South Korean stocks experienced a significant rally for the third consecutive session on Thursday, with the benchmark Korea Composite Stock Price Index (KOSPI) closing above the crucial 6,200-point mark. This notable achievement marks the first time the KOSPI has surpassed this level since the onset of the US-Iran war, fueled by growing optimism for a second round of peace talks between the two nations. Additionally, the local currency strengthened against the US dollar, reflecting positive market sentiment.
The benchmark KOSPI saw a robust increase of 134.66 points, or 2.21 percent, ultimately settling at 6,226.05. This surge signifies a strong rebound in the South Korean stock market.
This particular closing level of over 6,200 for the KOSPI is a key milestone, not reached since February 27th, when the index stood at 6,244.13. That date was just a day prior to the United States and Israel initiating air strikes on Iran, highlighting the market’s recovery from geopolitical tensions.
While Thursday’s performance was strong, the KOSPI’s all-time closing high remains at 6,307.27, a record established on February 26th.
Trading volume across the South Korean stock market was considerable, with 915.8 billion shares changing hands, valued at 26.5 trillion won (approximately $18 billion). Market breadth was positive, as gainers significantly outnumbered losers, with 654 stocks advancing against 206 declining.
Investor activity showed a clear trend: foreign investors made net purchases of 464.4 billion won worth of stocks, and institutions aggressively bought a net 1.1 trillion won. Conversely, individual investors were net sellers, offloading 1.8 trillion won worth of shares, indicating a shift in market participation.
Overall market sentiment was markedly optimistic, driven by increasing belief that the long-standing conflict in the Middle East is approaching a resolution. Hopes are high that this could lead to the reopening of the strategically vital Strait of Hormuz, easing global economic uncertainties.
Further bolstering this positive outlook, US President Donald Trump stated in a Wednesday interview with Fox News that the US-Israeli conflict against Iran was “very close to over.” The White House also indicated that additional peace talks “would very likely” occur in Pakistan’s capital, Islamabad, signaling diplomatic progress.
In a tangible step towards de-escalation, a Pakistani delegation had reportedly arrived in Tehran specifically to facilitate and arrange another round of crucial negotiations between the United States and Iran, underscoring international efforts for peace.
Lee Kyoung-min, a prominent analyst at Daishin Securities, commented on the renewed investor confidence: “It seems that investor appetite for risky assets revived as lingering uncertainties are fading away one by one. The South Korean stock market is now eagerly anticipating a scenario where a potential long ceasefire can effectively ease geopolitical tensions and diminish market uncertainties.”
Leading this robust market rally were strong performances from key technology and automotive shares.
Market bellwether Samsung Electronics saw its stock price climb by 3.08 percent to 217,500 won. Chip manufacturing giant SK hynix reached a fresh record high, adding 1.67 percent to close at 1.15 million won.
In the automotive sector, top carmaker Hyundai Motor experienced a significant jump of 5.12 percent, reaching 534,000 won, while its affiliate Kia also performed strongly, advancing 4.22 percent to 157,900 won.
Internet sector leaders also posted gains, with Naver, an internet giant, advancing 3.55 percent to 218,500 won, and its competitor Kakao gaining 2.02 percent to 50,600 won.
Retail stocks demonstrated strength as well, with Lotte Shopping soaring an impressive 13.31 percent to 121,700 won. Food giant Nongshim also saw an increase, mounting 1.19 percent to 381,500 won.
Major pharmaceutical firm Celltrion added 3.47 percent to 209,000 won, and entertainment powerhouse CJ ENM rose 2.59 percent to 55,500 won, showcasing broad-based market enthusiasm.
