Is the two-day plunge over… Samsung Electronics and SK Hynix surge more than 10% in the premarket

After the U.S. and Israel carried out airstrikes on Iran, the KOSPI has slumped for two straight days, but heavyweight stocks are rebounding sharply across the board in the premarket on the 5th.

As of 8:03 a.m., Samsung Electronics on the NextTrade (NXT) premarket was up 17,900 won (10.39%) from the previous day at 190,100 won. SK Hynix was also up 10.01%, trading at 934,000 won.

Other top market-cap companies are also surging, including Hyundai Motor (11.58%), LG Energy Solution (9.5%), Samsung Biologics (7.32%), SK Square (10.85%), Kia (9.32%) and Doosan Enerbility (13.52%). By contrast, Hanwha Aerospace is down in the 3% range.

A day earlier, the KOSPI and KOSDAQ fell by around 12% and 14%, respectively, triggering circuit breakers simultaneously. The KOSPI’s drop was larger than during the Sept. 11 attacks in 2001. The KOSDAQ also surpassed its previous record for the steepest decline, set on March 19, 2020.

Han Ji-young, a researcher at Kiwoom Securities, said, "There is news that the U.S. is indirectly discussing negotiation terms with Iran through the CIA, and the additional surge in international oil prices is easing, raising expectations that the Middle East situation will not spread into an all-out war involving ground troops," adding, "Given that KOSPI 200 night futures also hit the daily upper limit, the domestic market is expected to rebound today."

Reporter Roh Jeong-dong, hankyung.com dong2@hankyung.com