"Now is the time for peace." U.S. President Donald Trump wrote this on his social media platform, Truth Social, while announcing a ceasefire between Israel and Iran. The risk appetite for assets that had been subdued revived, and the KOSPI and KOSDAQ indices continued their rally after one day.
The KOSPI index closed at 3103.64, rising by 89.17 points (2.96%) from the previous day, marking its first time above the 3100 level since September 2021. The KOSDAQ index also recorded a rise of 16.14 points (2.06%) at 800.93, surpassing the 800 mark for the first time in 10 months since August of last year.
Foreign and institutional investors led the index's rise with a "double buying" approach. Notably, foreign investors net purchased 436 billion won in the KOSPI market and 173.3 billion won in the KOSDAQ market. The KOSPI 200 futures also showed "buying" sentiment.
The sharp decline in the exchange rate supported foreign buying. In the Seoul foreign exchange market, the exchange rate of the won against the U.S. dollar fell from 1382 won the previous day to 1360.2 won today. In addition to the Israel-Iran ceasefire, the influence of U.S. Federal Reserve Vice Chair Michelle Bowman, who indicated the possibility of a rate cut in July, had a significant impact.
The top contributor to the rise in the KOSPI index that day was SK hynix. The stock price of SK hynix surged to 283,000 won during the day, setting a new record since 2001. Due to profit-taking sales, the closing price rose by 7.32% (19,000 won) to 278,500 won. The market capitalization exceeded 200 trillion won based on the closing price. Samsung Electronics also rose by 4.31% (2,500 won), returning to "60,000 Electronics."
It is interpreted that investors flocked ahead of the performance announcement of Micron Technology, known as the "semiconductor barometer." Micron will release its performance for the third quarter of the 2025 fiscal year (February to May) at 5:30 a.m. on the 26th Korea time. The market believes that Micron is likely to raise its guidance for the fourth quarter of the 2025 fiscal year (June to August).
Chae Min-sook, a researcher at Mirae Asset Securities, noted, "The conference call by Micron could strengthen semiconductor market expectations before the performance announcements of Samsung Electronics and SK hynix in July. We expect DRAM memory prices to continue to rise by mid-single digits percentage compared to the previous quarter until the third quarter (July to September)."
In the KOSDAQ market, secondary battery stocks played a crucial role. The stocks of Ecopro and ECOPRO BM rose by 14.12% (6,050 won) and 6.05% (6,000 won), respectively, in one day. This is believed to be influenced by Tesla's launch of a robotaxi (self-driving unmanned taxi) service for the first time in 10 years. Stocks like Alteogen, Rainbow Robotics, and Peptron also closed at higher prices than the previous day.
By sector, the fortunes were mixed. As international oil prices, which had surpassed $80 per barrel, plunged to the $60 range, beneficiary sectors surged. The representative utility stocks, Korea Electric Power Corporation and Korea District Heating Corporation, saw their prices rise by 20.71% (5,850 won) and 14.11% (10,500 won), respectively.
Petrochemical stocks such as LOTTE Chemical and LG CHEM, as well as airline stocks including Korean Air, AIR BUSAN, and Jin Air, also recorded higher stock prices than the previous day.
The ruling Democratic Party of Korea established a "KOSPI 5000 Special Committee" the previous day, and expectations for a won-based stablecoin continued, resulting in strength in the banking and securities sectors.
Conversely, stocks that had performed well during the geopolitical crisis turned to a downward trend. The weakness of defense industry stocks like LIG Nex1, Hanwha Systems, and Korea Aerospace Industries was prominent. Shipping stocks such as STX Green Logis, Heung-A Shipping, and Korea Line Corporation, as well as oil and refining stocks like Joongang Enervis and Hung-gu Oil, also saw significant declines.
While the all-out war between Israel and Iran has concluded, there are opinions that the ceasefire may be uncertain. The animosity between the two countries remains, and the whereabouts of approximately 400 kg of highly enriched uranium that Iran is believed to have are also unclear.
Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The hardline faction in Iran may backlash regarding the so-called 'humiliating ceasefire,' while the hardline faction in Israel may resist the notion that 'nuclear threat resolution is incomplete.' If the core issue regarding Iran's potential nuclear weapons resurfaces, there is a high probability that military action will resume."