KOSPI reclaims the 5,700 level early on as oil prices plunge… SK surges on treasury-share cancellation

KOSDAQ extends gains for a second day

KRW/USD edges higher

The KOSPI opened up more than 2% as it digested President Donald Trump’s remarks on the war with Iran.

As of 9:07 a.m. on the 11th, the KOSPI was up 50.68 points, or 2.72%, from the previous session at 5,683.27. It briefly climbed as much as 3.07% to 5,702.48 in early trading.

Overnight, U.S. stocks ended mixed after a whipsaw session as investors closely monitored developments in the Middle East.

President Trump said the previous day that he would “end the war with Iran soon,” signaling an early conclusion, but after reports that Iran had laid mines in the Strait of Hormuz, he warned that “if they are not removed immediately, military consequences at an unprecedented level will be imposed.”

He also said that 10 Iranian vessels used for laying mines had been struck and that further attacks would follow.

International oil prices plunged on expectations of an early end to the war. On the New York Mercantile Exchange, West Texas Intermediate (WTI) futures for April delivery settled at $83.45 a barrel, down 11.9% from the previous session.

At this hour, individuals are leading the rise in the main board market with net purchases of KRW 231.0 billion. Foreign investors and institutions are net sellers of KRW 213.1 billion and KRW 36.0 billion, respectively.

Most of the KOSPI’s top market-cap names are higher.

Semiconductor heavyweights Samsung Electronics and SK hynix are up 2.77% and 2.03%, respectively. Hyundai Motor (3.81%), LG Energy Solution (2.45%), Samsung Biologics (4.21%), and Hanwha Aerospace (1.65%) are also advancing.

SK is jumping more than 9% in early trading after announcing the cancellation of treasury shares worth about KRW 5 trillion.

The KOSDAQ is also rising for a second straight day. At this hour, the KOSDAQ is up 1.8% at 1,158.11. In the KOSDAQ market, individuals and institutions are net buyers of KRW 149.9 billion and KRW 13.6 billion, respectively, while foreigners are net sellers of KRW 147.1 billion.

Most of the top KOSDAQ market-cap stocks are gaining. In particular, Qurient (16.5%) and Sungho Electronics (14.37%)—both constituents of the KOSDAQ Active exchange-traded fund (ETF)—are soaring for a second day.

The KRW/USD exchange rate opened higher. In the Seoul FX market, the won-dollar rate opened at KRW 1,474.0 per dollar, up KRW 4.8 from the previous session.

Roh Jeong-dong, Hankyung.com reporter dong2@hankyung.com