On the 22nd, the KOSPI opened higher and has been fluctuating around the 7,800 level in early trading. The rebound of 8% the previous day prompted profit-taking, limiting gains to some extent. The KOSDAQ rose nearly 5% early, triggering a buy-side sidecar for the second straight day.
As of 9:37 a.m., the KOSPI was trading at 7,861.71, up 46.12 points (0.59%) from the previous session. The index opened at 7,873.12, up 57.53 points (0.74%) from the previous day, but as losses narrowed it turned lower within 15 minutes.
In the stock market, foreigners are net sellers of nearly 1 trillion won, while individuals and the National Pension Service are net buyers of 800 billion won and 175 billion won, respectively, helping to defend the lower end of the index.
Samsung Electronics and SK hynix are weak in early trading. After surging the previous day, they appear to be catching their breath. Still, Samsung Electronics climbed to 303,500 won early on, hitting a record high. Shares of SK Square and Hyundai Motor are falling, while LG Energy Solution and Doosan Enerbility are rising.
Han Ji-young, a Kiwoom Securities researcher, said, "After digesting early profit-taking following the 8% surge in the KOSPI the previous day, the domestic market is likely to show a neutral price trend, influenced by headlines on U.S.-Iran negotiations during the session and a wait-and-see mood ahead of the market holiday on Monday next week."
The KOSDAQ opened at 1,119.43, up 13.46 points (1.22%). With a sharp rise for a second straight day, a buy-side sidecar was triggered at 9:33 a.m. For the second day in a row, it marked the eighth buy-side sidecar on the KOSDAQ this year.
A KOSDAQ sidecar is triggered when the KOSDAQ150 futures price rises 6% or more from the reference price and the KOSDAQ150 index rises 3% or more from the previous trading day's closing level, and both conditions persist simultaneously for 1 minute.
While individuals are net sellers of 360 billion won, foreigners and institutions are net buyers of 267 billion won and 120 billion won, respectively.
All of the top 10 stocks by market capitalization are rising. Among the heavyweights, EcoPro BM (10.26%), Alteogen (7.54%), and EcoPro (13.02%) are posting large gains.
Overnight, New York stocks ended higher on hopes for a U.S.-Iran peace deal. The Standard & Poor's (S&P) 500 rose 12.75 points (0.17%) to 7,445.72, and the Nasdaq composite gained 22.74 points (0.09%) to 26,293.10. The Dow Jones Industrial Average climbed 276.31 points (0.55%) to 50,285.66, setting a record high.
In early trading, a Reuters report that Iran's Supreme Leader Ayatollah Mojtaba Khamenei banned the export of enriched uranium temporarily sent international oil prices and U.S. Treasury yields sharply higher.
But sentiment recovered in the afternoon as hopes for progress in the talks revived. Following U.S. President Donald Trump's remark the previous day that "talks with Iran are in the final stage," U.S. Secretary of State Marco Rubio also said of the Iran talks that "there are some positive signs."
Nvidia, which released a surprise earnings report after the close the previous day, fell 1.8%. It appears profit-taking emerged as expectations for results had risen.