Powered by strong tandem buying from foreigners and institutions, the KOSPI index set a record high on the 21st.
Even though uncertainty from the Middle East war is still weighing on the market, the index surged more than 2% from the previous day and closed at the 6,380 level. It was the first time since Feb. 26, before the U.S.-Iran war broke out, that the KOSPI index finished above the 6,300 level on a closing basis.
The KOSPI index closed at 6,388.47, up 2.72% (169.38 points) from the previous trading day, rewriting its record high. It was the first time in 37 trading days since Feb. 26 that the KOSPI index closed above the 6,300 level. The KOSDAQ index, which had shown volatility by turning lower intraday, also finished higher at 1,179.03, up 4.18 points (0.36%).
The main board was led by foreigners and institutions. While foreigners bought more than 1.3 trillion won, institutions also posted a net purchase of 737.1 billion won. In institutional flows, securities firms—which capture individuals' exchange-traded fund (ETF) flows—net bought 828.4 billion won, and the national pension funds net bought 62.2 billion won. Individuals sold more than 1.9 trillion won.
By contrast, the KOSDAQ market was led by individuals. Individuals net bought 500.8 billion won, while foreigners and institutions net sold 354.7 billion won and 121 billion won, respectively.
Despite lingering geopolitical uncertainty from the Middle East, the market is leaning toward the possibility that the United States and Iran could reach a cease-fire deal. Lee Kyung-min, a researcher at Daishin Securities, said, "Uncertainty remained over whether Iran would join the talks, but as the likelihood of Iran participating in a second round of negotiations increased, the market took it as a signal of easing uncertainty."
U.S. President Donald Trump effectively extending by one day the two-week cease-fire deadline with Iran also served as a boon. The cease-fire had been set to end on the 21st, but Trump specified in an interview with Bloomberg that the end point would be Wednesday evening Washington time.
That corresponds to the evening of the 22nd Eastern time in the United States and the morning of the 23rd Korea time. It is only a short day, but the market appears relieved that it kept the embers of the negotiating table alive.
Kang Jin-hyuk at Shinhan Investment & Securities said, "The market expects TACO (Trump Always Chickens Out)," adding, "With strength in semiconductors such as Samsung Electronics and SK hynix, the KOSPI index hit a new high."
What supported the solo run of large-cap semiconductor stocks was overwhelming export data. Exports for April 1–20, released the same day, came to $50.4 billion, up 49.4% from the same period a year earlier. In particular, semiconductor exports reached $18.3 billion, surging 182.5% year over year.
Samsung Electronics shares rose 2.10%, and SK hynix soared 4.97% from the previous day. Notably, SK hynix closed at 1,224,000 won on a closing basis, setting a record high.
Researcher Kang explained, "Although the index hit an all-time high, 12-month forward price-earnings ratio (PER) is around 7.5 times as semiconductor-centered earnings estimates have jumped," adding, "This is at the level seen during the COVID-19 pandemic."
On top of that, Samsung SDI and LG Energy Solution also surged on news that they signed a battery supply contract with German automaker Mercedes-Benz.