On the 15th, when news broke of a U.S.-Iran end-of-war agreement, the KOSPI index rose 5% to hold the 8,500 level.
As of 11:52 a.m., the KOSPI index was up 441.12 (5.43%) from the previous trading day at 8,564.74. It climbed to 8,600 early in the session, then gave back a bit of the gains.
Institutions and foreigners are net buyers of 1 trillion won and 350 billion won, respectively. Specifically, among institutions, financial investment—where exchange-traded fund (ETF) money is tallied—is net buying 650 billion won, and the national pension funds are net buying close to 500 billion won. Individuals alone are net sellers of 1.3 trillion won.
Samsung Electronics and SK hynix are surging 4% and 6% to trade at 330,000 won and 2.28 million won. Samsung Electro-Mechanics, buoyed by multilayer ceramic capacitors (MLCC), is up 12%, and LG Innotek, boosted by its substrate and optical solutions divisions, is also jumping 15%.
On the night before, U.S. President Donald Trump declared that negotiations on a memorandum of understanding (MOU) to end the war had been finalized. It came 106 days after the war began. The two countries plan to sign the MOU on the 19th and immediately open Hormuz.
On news that the Strait of Hormuz will open, oil prices plunged and risk asset appetite recovered. Brent crude for August delivery is down 4% and trading around $83, and West Texas Intermediate (WTI) July futures also fell 4% to around $81.
U.S. Government Bonds also inched lower. The 10-year U.S. Government Bonds yield is down 1.32% at 4.42%, and the 30-year is down 0.98% at 4.925%.
At the same time, the KOSDAQ index was up 6.73 (0.65%) from the previous trading day at 1,035.78. It topped the 1,050 level early on, then turned lower intraday on foreign selling. It later rebounded as individuals moved to a net buy of 500 billion won.
Large-cap names are strong, including Alteogen (5%), EcoPro BM (8%), EcoPro (5%), and Rainbow Robotics (6%).