The KOSPI on the 14th again topped the 6,000-point mark intraday. It has been a little over a month since the KOSPI plunged after international oil prices soared following a surprise attack by the United States and Israel on Iran on Feb. 28. The shift came as preference for risk asset grew in global financial markets on news that the United States and Iran, currently in a cease-fire, are continuing end-of-war talks.
That day, the KOSPI was up around 3% near 6,000 points in the morning. It opened at 5,960.00, up 151.38 points (2.61%) from the previous trading day, and the index's gains have been widening as foreigners and institutions turned net buyers early in the session.
It has been 30 trading days since the KOSPI exceeded 6,000 points intraday, last seen on Mar. 3, right after the Iran war broke out (intraday 6,180.45). As of 10:30 a.m., foreigners were net buyers of more than 400 billion won on the Korea Exchange, and institutions also held a buying advantage of nearly 400 billion won. Pension fund money is flowing in. Individuals, by contrast, held a selling advantage of nearly 900 billion won.
The first end-of-war talks between the United States and Iran fell apart, but according to U.S. media, the two countries are continuing back-channel negotiations. U.S. President Donald Trump met with reporters at the White House on the 13th and said, "Iran is desperately hoping for a deal."
The blockade of the Strait of Hormuz, which dealt the biggest shock to the global economy after the U.S.-Iran war, is also entering a new phase. As Iran maintained a prolonged blockade of the strait, the United States has responded with its own blockade operations there. It has deployed more than 15 warships to take control of the surrounding area.
Since the start of the U.S. military's "counter-blockade" operation, 34 ships passed through the Strait of Hormuz on the 12th (local time), reportedly the most since the war began. As expectations grow that the war and strait blockade could be resolved soon, U.S. stocks rose across the board the previous day.
As fears of war recede and investor sentiment improves sharply, large-cap stocks are posting big gains. Samsung Electronics, SK hynix and Hyundai Motor, among the top market-cap names, are all rising. Defense stock Hanwha Aerospace, by contrast, is falling.
The KOSDAQ also surged more than 2%, topping 1,120 points. Foreigners and institutions are net buyers together on the KOSDAQ market as well. Except for some names such as Sam Chun Dang Pharm and LEENO Industrial, top market-cap stocks are rising across the board.