On the 22nd, the KOSPI index broke through 6,400 points, setting another record high after the previous day. As the United States and Iran extended a cease-fire period and sought an "exit strategy" from the war, investor sentiment improved.
That day, the KOSPI index finished transaction at 6,417.93, up 29.46 points (0.46%) from the previous trading day. It was a record high.
The KOSPI index started transaction at 6,387.57, down 0.90 point (0.01%), and repeatedly rose and fell around the flat line during the session. Foreign investors showed net selling in both the futures and cash markets. But as individuals made net purchases of nearly 1.8 trillion won and the national pension fund also showed a buying bias, the index turned upward.
U.S. stocks fell across the board overnight, but news came right after the U.S. market close that the United States and Iran had extended the cease-fire period. President Donald Trump said on his social media that attacks on Iran would be halted and the cease-fire period extended until Iran's leadership and negotiating team present a unified negotiating plan. The cease-fire expiration date initially agreed upon by the two countries was the evening of the 22nd, Eastern time in the United States.
Investors also focused on the Senate Banking Committee's confirmation hearing held overnight for Kevin Warsh, a candidate for chair of the U.S. Federal Reserve (Fed). At the hearing, Warsh emphasized the Fed's independence. Referring to President Trump, who has openly pressured for rate cuts, Warsh said he was "absolutely not" the president's "puppet."
Experts said Warsh's answers at the hearing largely matched market expectations. In other words, there was nothing that could deliver an unexpected shock to financial markets.
As profit-taking orders emerged near an all-time high, large caps on the main board such as Samsung Electronics, SK hynix and Hyundai Motor slipped slightly, but some names including Samsung Electro-Mechanics and Samsung SDI gained.
Shares of HD Hyundai Heavy Industries surged after the company said it would expand its business portfolio into power generation for data centers. HD Hyundai Heavy Industries recently said it signed a contract to supply power generation facilities based on its HiMSEN engines to a U.S. energy infrastructure developer.
The KOSDAQ index, which opened lower, also reversed higher. The KOSDAQ index finished transaction at 1,181.12, up 2.09 points (0.18%).
Although the biotech sector was weak—with Sam Chun Dang Pharm plunging after holding a corporate presentation for securities firm analysts—equipment makers such as LEENO Industrial and Jusung Engineering rose.