On news that the United States seized an Iranian ship, the KOSPI started slightly higher on the 20th and continues to fluctuate around the 6,200 level. SK hynix is up nearly 2% ahead of its earnings release on the 23rd, while Samsung Electronics is down slightly and is in the 210,000 won range in transaction.
As of 9:08 a.m., the KOSPI was down 14.17 points, or 0.23%, from the previous trading day at 6,177.75 in transaction. The index opened slightly higher and briefly eyed the 6,220 level, but turned lower below 6,200 on intraday foreign selling.
By investor type, foreigners have a net sell of 102.3 billion won. Institutions and individuals are net buying 44.7 billion won and 54.6 billion won, respectively, lifting the index. Breaking down institutions, financial investment with the nature of exchange-traded fund (ETF) funds is a net buy of 40.6 billion won, and the national pension fund is a net buy of 2.8 billion won.
Over the weekend, Iran said it would fully open the Strait of Hormuz during the truce period, raising hopes for an end to the war, but on the day, U.S. President Donald Trump said he seized an Iranian cargo ship, reigniting Middle East tensions.
Earlier, on the 19th (local time), President Trump said on the social media platform Truth Social, "Today, an Iranian cargo ship named 'Tuska,' about 900 feet (about 275 meters) long and as heavy as an aircraft carrier, tried to break through our naval blockade and it didn't go well," adding, "Our Navy warship put a hole in the engine room to stop it."
Iran immediately pushed back via state media. The Iranian side said, "The armed forces of the Islamic Republic of Iran warn that they will soon respond and retaliate against the U.S. military's 'armed piracy.'"
The "two-week truce" between the United States and Iran ends on the 21st.
International oil prices also surged again on Middle East uncertainty. West Texas Intermediate (WTI) futures, which fell 9% on the 17th to close around $80, jumped 7% on the day and are in the $88 range in transaction. Brent crude also jumped nearly 7% and is in the $96 range in transaction.
However, brokerages are saying investors should increase weights, noting that negotiations between the United States and Iran will ultimately head toward an end to the war and that the earnings-driven market remains intact. According to Daishin Securities, the 12-month forward price-earnings ratio (PER) is 7.55 times, near the COVID-19 trough of 7.52 times.
Lee Kyung-min, a researcher at Daishin Securities, said, "Noise in the negotiation process between the United States and Iran is inevitable," adding, "However, with both the United States and Iran having gained practical benefits, the direction toward an end to the war is clear, so volatility from negotiation noise is an opportunity to increase weights."
At the same time, the KOSDAQ was down 0.72% from the previous trading day and is in the 1,161 range in transaction. The index opened slightly lower and is extending losses as foreigners have a net sell approaching 70 billion won intraday. Individuals alone are net buying 100 billion won.