The KOSPI index, which opened up 2% on Samsung Electronics' "earnings surprise," reversed lower on uncertainty over a cease-fire between the United States and Iran.
Earlier, Samsung Electronics disclosed that first-quarter operating profit came to 57 trillion won. It is the first time a domestic corporations has posted more than 50 trillion won in operating profit in a single quarter.
As of 11:14 a.m., the KOSPI index was trading at 5,437.62, down 12.71 points (0.23%) from the previous session. The index started at 5,550, up 2%, briefly eyed the 5,600 level intraday, but turned lower on retail selling. Still, it is attempting to rebound around the 5,450 level.
By flows, individuals who were net buyers of nearly 400 billion won early in the session have turned to a net sell of 182.4 billion won. Foreign investors also switched to net buying around 10 a.m., but are now net selling 73 billion won, pushing the index down. Only institutions are net buying, at 132.3 billion won. Among institutions, the national pension fund is buying 110.2 billion won and investment trusts are purchasing 58.4 billion won.
Samsung Electronics and SK hynix are trimming gains. Samsung Electronics is trading around 190,000 won, up 0.26%, and SK hynix is around 890,000 won, up 1%.
Currently in the KOSPI market, 335 stocks are rising and 521 are falling.
At the same time, the KOSDAQ index was also trading at 1,034.54, down 12.83 points (1.22%) from the previous session. The index opened higher at 1,060.25 but was pushed down to the 1,035 level by retail selling.
Individuals are net selling 60 billion won, dragging the index lower. Foreign investors and institutions have a buying edge of 61.1 billion won and 21.2 billion won, respectively.
Sam Chun Dang Pharm plunged 12% on assessments that it still failed to dispel market uncertainty, even though it withdrew a 250 billion won block deal (large-lot trade) at a press conference the previous day. As sentiment toward biotech stocks weakens, Alteogen, ABL Bio, and Kolon TissueGene are also down about 1%.
Meanwhile, the United States–Israel and Iran are continuing talks over a cease-fire plan, but the market sees a low chance of a short-term deal. On prediction market platform Polymarket, the probability that the United States and Iran will agree to a cease-fire by the 7th is reflected at 2%. As of the 15th the probability is 15%, and by the 30th it is 29%, indicating sentiment that an end to the war within April is also unlikely.
Earlier, the United States set the "ultimatum" period until 8 p.m. on the 7th Eastern time (9 a.m. on the 8th Korea time) and is conducting end-of-war negotiations. The plan calls for a first stage 45-day cease-fire and a second stage to end the war.
U.S. President Donald Trump warned, "It is not sufficient, but it is very important," adding, "If an agreement is not reached by the negotiation deadline, we will completely destroy all bridges and power plants within four hours."