The KOSPI index surged more than 4% on June 12, driven by expectations of progress in negotiations between the U.S. and Iran, which eased Middle East risks, along with strong performance in U.S. semiconductor stocks. Foreign investors returned to the market after 25 trading days, contributing to the index's recovery above the 8,100 mark. The KOSDAQ also closed up over 3% due to institutional buying.
According to the Korea Exchange, the KOSPI closed at 8,123.62, up 359.67 points (4.63%) from the previous trading day.
The index opened at 8,263.85, up 499.90 points (6.44%), and expanded its gains in early trading. A buying sidecar was triggered in the securities market at 9:06 a.m. due to the sharp rise in KOSPI 200 futures. Although some gains were given back in the latter part of the session due to profit-taking, the index finished above 8,100.
In the previous night’s trading on Wall Street, optimism surrounding a potential resolution in U.S.-Iran negotiations boosted risk appetite. On June 11 (local time), the Dow Jones Industrial Average rose 1.86%, the S&P 500 climbed 1.75%, and the Nasdaq increased by 2.54%. Notably, semiconductor stocks such as Micron (up 11.7%), Intel (up 9.3%), and NVIDIA (up 2.2%) contributed to improved investor sentiment in the domestic market.
Lee Kyung-min, a researcher at Daishin Securities, noted, "The domestic market started with a gap up and expanded its gains, prompting a buying sidecar, but some profits were taken in the latter part of the session. The market is leaning towards the possibility of a peace agreement between the U.S. and Iran, strengthening the preference for risk assets."
He added, "The fact that foreign investors engaged in simultaneous net buying in both cash and futures markets after 25 trading days is a positive factor for improving investor sentiment. The recent shift away from extreme concentration towards broader sector buying is also encouraging."
On this day, foreign and institutional investors net bought 2.72 trillion won and 3.10 trillion won, respectively, driving the index higher. In contrast, individual investors net sold 5.60 trillion won.
Among the top market capitalization stocks, Samsung Electronics rose 7.86%, SK Hynix increased by 2.33%, SK Square surged 10.59%, Hyundai Motor gained 1.68%, LG Energy Solution rose 4.03%, Samsung Life Insurance increased by 5.62%, Samsung C&T rose 5.37%, and HD Hyundai Heavy Industries gained 0.62%. However, Samsung Electro-Mechanics fell by 5.04%.
By sector, semiconductor, shipbuilding, and defense stocks showed strong performance. Samsung Electronics and SK Hynix, along with SK Square, saw significant increases, while shipbuilding stocks such as Hanwha Ocean, Samsung Heavy Industries, and HD Korea Shipbuilding also attracted bargain-hunting interest, as did defense stocks like Hanwha Aerospace and Hyundai Rotem.
The KOSDAQ index closed at 1,029.05, up 32.12 points (3.22%) from the previous trading day.
In the KOSDAQ market, institutions net bought 641.5 billion won, while foreign and individual investors net sold 439.5 billion won and 264.2 billion won, respectively.
Among the top market capitalization stocks, EcoPro BM rose 3.47%, EcoPro increased by 3.14%, Rino Technology gained 4.71%, and IOTechniques surged 21.43%. Wonik IPS hit the upper price limit, rising 30.00%. Conversely, Alteogen fell by 2.88%, Juseong Engineering dropped by 5.91%, Kolon TissueGene decreased by 0.39%, HLB fell by 2.74%, and Samchundang Pharmaceutical dropped by 0.57%.
* This article has been translated by AI.
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