Seoul’s benchmark KOSPI index soared to an unprecedented all-time high on Monday, fueled by a sustained rally in pivotal semiconductor stocks and optimism surrounding progress in US-Iran peace talks aimed at de-escalating the prolonged Middle East conflict. Concurrently, the South Korean won experienced a depreciation against the US dollar.
Despite an initial dip of 1.08 percent at market open, the Korea Composite Stock Price Index (KOSPI) demonstrated robust recovery. The benchmark index ultimately closed up 62.13 points, or 0.69 percent, reaching a record 9,114.55, after peaking earlier in the session at 9,253.00.
Trading activity remained moderate, with 377.2 million shares changing hands, totaling 41.4 trillion won (approximately $26.9 billion). Despite the market’s overall ascent, decliners significantly outpaced gainers, with 739 stocks falling against 148 advancing.
Domestic retail investors and institutional funds emerged as significant net buyers, injecting 2.15 trillion won and 308.4 billion won into the market, respectively. Conversely, foreign investors actively divested, recording net sales of 2.55 trillion won.
The positive market sentiment was heavily influenced by reports from Sunday, where Washington and Tehran concluded their initial round of discussions. Mediated by Qatar and Pakistan, these talks yielded an agreement on a roadmap, aiming to finalize a comprehensive deal within the next 60 days.
Previously, the delicate negotiations faced significant risks of collapse. Tensions escalated following Tehran’s announcement of closing the strategic Strait of Hormuz, coupled with repeated threats from US President Donald Trump to resume military actions against Iran.
Kang Jin-hyeok, an analyst at Shinhan Securities, commented on the situation, stating, “Overall, negotiations proceeded smoothly, with earlier aggressive messages largely regarded as short-lived market noise.”
Reflecting the broader market trend, the pivotal semiconductor sector concluded the day’s trading firmly in positive territory.
Notably, chip manufacturing giant SK hynix experienced a remarkable surge, climbing 5.61 percent to 2.92 million won. This impressive ascent saw SK hynix surpass industry leader Samsung Electronics in market capitalization for the first time in history.
SK Square, the parent company of SK hynix, also posted significant gains, surging 10.67 percent to 1.97 million won. Meanwhile, Hanmi Semiconductor, a key provider of chip manufacturing equipment, rose 2.2 percent to 301,500 won, benefiting from the sector’s bullish momentum.
In the defense sector, major players also saw gains. Hanwha Aerospace advanced 0.27 percent to 1.13 million won, while Korea Aerospace Industries (KAI) climbed 1.43 percent to 148,600 won.
Conversely, not all major stocks ended positively. Samsung Electronics experienced a slight dip of 0.14 percent, closing at 353,500 won. Its affiliate, Samsung Electro-Mechanics, a significant manufacturer of electronic components, also saw a decline, dropping 1.85 percent to 2.23 million won.
Elsewhere, leading automotive manufacturer Hyundai Motor recorded a notable decrease of 5.22 percent, settling at 581,000 won. Similarly, prominent battery producer LG Energy Solution dipped 4.7 percent to 385,500 won.
The financial and pharmaceutical sectors also faced headwinds, with Samsung Life Insurance sliding sharply by 9.36 percent to 450,500 won. Pharmaceutical giant Samsung Biologics likewise retreated, losing 5.75 percent to 1.3 million won.
