As tensions in the Middle East worsened, U.S. stocks fell across the board the previous day, but the domestic market closed higher. The KOSPI index, which plunged at the open, rebounded intraday to hold the 7,700 level, while the KOSDAQ index jumped more than 4%, putting the 1,000 mark back within sight.
Although foreign selling continued, institutional and retail funds kept flowing in, and gains in U.S. index futures appeared to lift investor sentiment.
On the 11th, the KOSPI index finished at 7,763.95, up 33.13 points (0.43%) from the previous session. After a sharp drop at the open, the KOSPI fell more than 4% to the 7,500 level, but recovered losses in the morning and then hovered around flat with repeated swings.
Samsung Electronics fell, but SK hynix and SK Square rose 2% to 3%, leading the rebound. As the early-session dumping subsided, most large-cap stocks ended with only slight declines.
Overnight, as the United States and Iran again showed signs of conflict, investor appetite for global risk assets weakened, but during the day here the two sides appeared to ease tensions. U.S. President Donald Trump mentioned strikes on Iranian infrastructure overnight, but after contacting the Iranian side, issued a message that strikes would be halted.
Exports early this month, released intraday, also remained strong. On news that exports for June (1–10) hit a record high, led by semiconductors, IT shares rebounded.
After opening lower, the KOSDAQ index posted even stronger gains. With market heavyweight Alteogen surging, large semiconductor materials, parts, and equipment stocks such as Jusung Engineering, Wonik IPS, and SIMMTECH generally jumped sharply. On news that MiCo would acquire the Netherlands-based NEM Energy, KoMiCo rose to the daily limit.
As the KOSDAQ market strengthened, a buy-sidecar was triggered, temporarily halting program buy orders for the KOSDAQ150 index. The KOSDAQ index closed at 996.93, up 45.30 points (4.76%).
Foreign investors were net sellers in both the main board and the KOSDAQ market. What drove the KOSDAQ index higher was exchange-traded funds (ETF). More than 600 billion won in net inflows came through ETFs alone.