Seoul’s stock market soared on Monday, extending its impressive winning streak to a third consecutive day. The benchmark Korea Composite Stock Price Index (KOSPI) decisively broke above the 8,500-point threshold, propelled by news of a landmark peace agreement between the United States and Iran, signaling an end to their prolonged conflict. This positive sentiment also saw the Korean won appreciate sharply against major currencies.
The KOSPI concluded the trading day up a significant 422.36 points, or 5.2 percent, to settle at 8,545.98. The index even touched an intraday high of 8,603.48, showcasing robust investor confidence. Lee Kyoung-min, an analyst at Daishin Securities, commented on the market’s performance, stating, “The KOSPI surged past the 8,500-point mark as the breakthrough in peace talks ignited a strong risk-on rally across the market.”
Driving this bullish trend were substantial net purchases from foreign and institutional investors, who collectively added upward momentum to the South Korean equities market. These key investor groups collectively acquired 1.53 trillion won ($991.9 million) worth of shares, significantly offsetting the 1.49 trillion won in net sales by retail investors.
Reflecting the intensity of the early market activity, the Korea Exchange, the nation’s primary bourse operator, issued a “sidecar” shortly after opening. This marked the 14th instance of such a measure, typically implemented during periods of high volatility to stabilize market operations.
The catalyst for this global market optimism stemmed from Sunday’s announcement by US President Donald Trump. He confirmed a historic agreement with Iran to cease hostilities, further committing to authorize the unrestricted opening and removal of the naval blockade in the vital Strait of Hormuz. An official signing ceremony for this pivotal peace accord is anticipated to take place in Switzerland later this week on Friday.
Trading volume on the Seoul exchange was notable, with 510.3 million shares exchanging hands, valued at 38.6 trillion won. Market breadth was overwhelmingly positive, as advancing stocks outnumbered decliners by a significant margin of 674 to 206.
Sector-wide gains were evident, with most market heavyweights posting strong performances. Tech giants led the charge: Samsung Electronics, the market’s top-cap, saw its shares climb 4.5 percent to 337,000 won, while its chipmaking rival, SK hynix, surged 6.42 percent to 2,288,000 won. Leading automaker Hyundai Motor jumped 6.59 percent to 647,000 won, battery manufacturer LG Energy Solution advanced 5.12 percent to 420,500 won, and major financial conglomerate KB Financial increased 5.21 percent to 169,600 won.
The logistics sector also experienced a significant boost, fueled by investor expectations of reduced cost burdens once the Strait of Hormuz reopens for unrestricted passage. Shipping giant HMM saw its stock close up 6.23 percent to 21,300 won, while national carrier Korean Airlines soared an impressive 12.78 percent to 30,000 won.
