KOSPI Attempts to Recover 2200 Level as US-Iran Tensions Ease... KOSDAQ Firmly Steady

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] The KOSPI is showing a slight rise in early trading, aiming to recover the 2200 level. This appears to be influenced by easing tensions between the U.S. and Iran, as well as reduced concerns over trade conflicts, with the signing of the U.S.-China Phase One trade agreement scheduled for next week. The KOSDAQ index is also recording a firm gain.

On the 10th, the KOSPI opened at 2189.48, up 3.03 points (0.14%) from the previous trading day. In early trading, it is showing a firm gain driven by net buying from individual and foreign investors. As of 9:24 a.m., it was at 2193.08, up 6.63 points (0.30%) from the previous day.

Overnight, major New York stock indices rose as Middle East tensions eased and optimism about the U.S.-China trade agreement strengthened. On the 9th (Eastern Time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 28,956.90, up 211.81 points (0.74%) from the previous session. The Standard & Poor's (S&P) 500 index rose 21.65 points (0.67%) to 3,274.70, and the tech-heavy Nasdaq closed at 9,203.43, up 74.18 points (0.81%).

The previous day, the Korean stock market rose on positive news that Iran does not want war and U.S. President Donald Trump’s remarks to refrain from using military force, avoiding the worst-case scenario. Kiwoom Securities researcher Sangyoung Seo said, “The U.S. stock market, which closed higher that day, was positively influenced by news of easing U.S.-Iran tensions, such as the Swiss Foreign Ministry’s announcement that Switzerland is mediating talks between Iran and the U.S.”

However, he pointed out that ongoing attacks on U.S. military bases by pro-Iran armed groups remain a burden. Seo said, “There were missile attacks again today following yesterday, and the U.S. stock market partially gave back gains due to related news. Although the worst-case scenario of full-scale war between the U.S. and Iran has been avoided, long-term uncertainty is inevitable, which could trigger concerns about economic slowdown such as reduced consumption, likely limiting the rise of global stock markets.”

Looking at trading trends by participant, individual and foreign investors are leading the index rise with net purchases of 106.7 billion KRW and 59 billion KRW, respectively. In contrast, institutional investors are net sellers with 167.1 billion KRW.

By sector, non-metallic minerals, electrical and electronics, and transportation equipment are rising, while food and beverages, electric and gas utilities, and machinery are declining.

Among the top market capitalization stocks, Hyundai Motor, Samsung Electronics, LG Household & Health Care, POSCO, and SK Hynix are showing relatively strong gains. Conversely, Shinhan Financial Group, NAVER, and Samsung C&T are declining.

Currently, in the KOSPI market, 453 stocks are rising without any hitting the upper limit, 286 stocks are falling without any hitting the lower limit, and 140 stocks are unchanged.

The KOSDAQ index is also rising in early trading, aiming to recover the 670 level. It opened at 668.79, up 2.70 points (0.41%) from the previous day, and is showing a firm gain supported by net buying from individual investors. As of 9:23 a.m., it was at 666.28, up 0.19 points (0.03%) from the previous day.

Currently, individual investors are net buyers with 65.5 billion KRW, while foreign and institutional investors are net sellers with 53.7 billion KRW and 10.1 billion KRW, respectively.

By sector, paper and wood products, transportation equipment and parts, and entertainment and culture are rising, while broadcasting services, telecommunications equipment, and semiconductors are declining.

Among the top market capitalization stocks, Solbrain, Paradise, Studio Dragon, Hugel, and Medytox are rising. Conversely, CJ ENM, SK Materials, Helixmith, and Medison are declining.

Currently, in the KOSDAQ market, including Hyeonjin Materials which hit the upper limit, 792 stocks are rising, none are hitting the lower limit, 385 stocks are falling, and 139 stocks are unchanged.

This content was produced with the assistance of AI translation services.