The South Korean stock market achieved a historic milestone on Monday, with the benchmark KOSPI closing at an all-time high. This remarkable performance was largely driven by a sustained rally in key semiconductor shares, further bolstered by encouraging signals of progress in US-Iran peace talks aimed at resolving their protracted conflict in the Middle East. Conversely, the local currency, the Korean won, experienced a depreciation against the U.S. dollar.
Despite an initial dip, opening 1.08 percent lower, the Korea Composite Stock Price Index (KOSPI) demonstrated robust resilience throughout the trading session. The index surged by 62.13 points, marking a 0.69 percent gain, to conclude at a record 9,114.55. Earlier in the day, the KOSPI had even touched an intraday high of 9,253.00, underscoring strong market momentum.
Trading activity was moderate, with 377.2 million shares changing hands, totaling a value of 41.4 trillion won (approximately $26.9 billion). Market breadth indicated a cautious sentiment among some investors, as declining stocks significantly outnumbered gainers, with 739 issues falling compared to 148 advancing.
Investor sentiment analysis revealed contrasting behaviors among market participants. Retail investors and institutional investors were significant net buyers, acquiring 2.15 trillion won and 308.4 billion won worth of shares, respectively. In contrast, foreign investors were net sellers, offloading stocks valued at 2.55 trillion won.
The positive market mood was partly fueled by geopolitical developments. On Sunday, Washington and Tehran successfully concluded their initial round of talks, establishing a clear road map aimed at finalizing a comprehensive deal within the next 60 days. This breakthrough was announced in a joint statement from the mediating nations, Qatar and Pakistan.
Prior to this agreement, the US-Iran negotiations had faced considerable challenges and a significant risk of collapse. Tensions escalated when Tehran announced the closure of the strategic Strait of Hormuz, coupled with repeated threats from US President Donald Trump to resume military actions against Iran.
“Despite some aggressive messages, which were largely perceived as short-lived disturbances, the negotiations proceeded smoothly overall,” commented Kang Jin-hyeok, a prominent analyst at Shinhan Securities, offering an expert perspective on the geopolitical landscape.
Leading the market’s ascent, semiconductor shares concluded the day firmly in positive territory, showcasing robust investor confidence in the chip sector.
Chip manufacturing powerhouse SK hynix saw a significant jump of 5.61 percent, closing at 2.92 million won. This surge propelled SK hynix past Samsung Electronics in market capitalization for the very first time, marking a notable shift in the competitive landscape. SK Square, the parent company of SK hynix, also experienced a substantial gain, rocketing 10.67 percent to reach 1.97 million won. Additionally, Hanmi Semiconductor, a crucial provider of chip manufacturing equipment, climbed 2.2 percent to 301,500 won.
In other sectors, defense stocks also performed well. Defense giant Hanwha Aerospace advanced 0.27 percent to 1.13 million won, while Korea Aerospace Industries saw a rise of 1.43 percent, closing at 148,600 won.
However, not all prominent stocks participated in the rally. Samsung Electronics, despite the broader semiconductor strength, recorded a slight dip of 0.14 percent to 353,500 won. Its electronic components manufacturing affiliate, Samsung Electro-Mechanics, also experienced a loss, falling 1.85 percent to 2.23 million won.
Major blue-chip companies outside the tech sector faced downward pressure. Top carmaker Hyundai Motor decreased 5.22 percent to 581,000 won, and leading battery maker LG Energy Solution dipped 4.7 percent to 385,500 won. The financial sector also saw declines, with Samsung Life Insurance sliding 9.36 percent to 450,500 won. Pharmaceutical giant Samsung Biologics retreated 5.75 percent to 1.3 million won.
In the foreign exchange market, the Korean won weakened against the US dollar, trading at 1,537 won, a decrease of 10 won from the previous session’s close.
