On the 8th, KOSPI and KOSDAQ indexes surged across the board on news that the United States and Iran had effectively agreed to a two-week cease-fire and the opening of the Strait of Hormuz. Hopes that the Iran war could be wrapped up lifted investor sentiment.
With the market jumping sharply at the open, a buy sidecar (temporary suspension of program-trading quote effectiveness) was triggered during the session in both the KOSPI and KOSDAQ markets. The won-dollar exchange rate, which topped the 1,500-won range the previous day, eased to the low 1,470-won range, showing signs of stabilization.
The KOSPI index closed at 5,872.34, up 377.56 points (6.87%) from the previous session. As funds poured into index futures early in the session, a buy sidecar was triggered, and in the afternoon the index even spiked to 5,919.60. The KOSPI climbing above the 5,910 level intraday was the first time in 31 trading days since Feb. 23.
What drove the index higher was demand from financial investment (institutions), where exchange-traded fund (ETF) investments are counted. In the main board, financial investment recorded a net buy of 4.5577 trillion won. Foreign investors also net bought for a second straight day following the previous day (370.4 billion won), totaling 2.6445 trillion won. Only individuals sold heavily, dumping 6.5313 trillion won worth of stocks.
On the main board, most of the 784 issues finished higher, and six stocks, including Daewoo Engineering & Construction and GS Engineering & Construction, hit the upper limit (the top of the daily price band). Unchanged and declining issues numbered 22 and 107, respectively.
The rally was especially strong among large-cap semiconductor stocks. SK hynix jumped 12.77%, successfully reclaiming the 1 million won level, and Samsung Electronics gained 7.12% to finish trading at 210,500 won.
SK Square soared 15%, and Hyundai Motor (7.40%), Doosan Enerbility (6.64%), Kia (5.57%), and Samsung Biologics (0.76%) also rose. However, Hanwha Aerospace and LG Energy Solution fell 3.45% and 0.61%, respectively.
The KOSDAQ index finished at 1,089.85, up 53.12 points (5.12%) from the previous session. It was the first time in about two months since Feb. 6 (closing 1,080.77) that the KOSDAQ index topped the 1,080 level. Sixteen KOSDAQ stocks hit the upper limit, 1,429 advanced, and a total of 306 were flat or down.
In the KOSDAQ market, institutions and foreign investors net bought 368.5 billion won and 242.3 billion won, respectively, while individuals net sold 581.9 billion won.
Most of the top KOSDAQ market-cap stocks also flashed red. Rainbow Robotics soared more than 11%, and LEENO Industrial posted gains in the 6% range. Alteogen (5.79%), EcoPro (5.73%), HLB (5.17%), EcoPro BM (3.47%), ABL Bio (2.99%), Kolon TissueGene (2.73%), and Peptron (2.16%) also rose. In contrast, Sam Chun Dang Pharm closed down 6.55%.
Kang Jin-hyeok, an analyst at Shinhan Investment & Securities, said, "With this cease-fire negotiation, Korea's stock market, cited as the biggest potential victim of a Hormuz Strait blockade, rebounded sharply," and noted, "Foreign investors showed net buying, centered on the electrical and electronics sector."