KOSPI recovers the 5,700 level intraday as Trump’s willingness to negotiate comes into focus

Trump: “Iran gave us a tremendous gift… related to oil and gas”

Kakao Games up 9%… Pearl Abyss also sharply rebounds by around 15%

The KOSPI is rising more than 2% in early trading as expectations for an end to hostilities between the U.S. and Iran gain traction, even as international oil prices climb.

As of 9:06 a.m. on the 25th, the KOSPI was up 139.44 points (2.51%) from the previous session at 5,693.36. The index at one point jumped as much as 3.06% to around 5,724 intraday.

The early gain is seen as driven by growing hopes for a ceasefire after U.S. President Donald Trump signaled willingness to negotiate to resolve the Middle East war.

Ahead of the New York stock market open the previous day, Trump wrote on Truth Social, a social networking service (SNS), that “the United States and Iran have had very good and productive talks over the past two days to fully and comprehensively resolve the hostilities in the Middle East,” adding that “in light of the deep, specific and constructive tone of the discussions, I instructed the Department of War (Department of Defense) to postpone for five days all military strikes on Iran’s power plants and energy infrastructure.”

At the swearing-in ceremony at the White House for incoming Secretary of Homeland Security Mark Wayne Mullin on the day, Trump also said, “In fact, they gave us a gift,” adding that it was “related to oil and gas.”

He continued, “It was a really important gift. It means something to me in that we’re negotiating with the right people,” adding that it was “related to shipping through the Strait of Hormuz.”

Oil prices, however, remained volatile. Brent crude futures for May delivery settled at $104.49 a barrel, up 4.6% from the previous session. U.S. West Texas Intermediate (WTI) futures for May delivery settled at $92.35 a barrel, up 4.8%.

At this time, foreign investors and institutions in the Korea Exchange’s main board market were net buyers of 252.3 billion won and 607.1 billion won, respectively. Retail investors were net sellers of 947.4 billion won.

KOSPI heavyweights were broadly higher, except for HD Hyundai Heavy Industries. Samsung Electronics and SK hynix were up 2.98% and 4.06%, respectively. SK hynix said it had confidentially submitted a registration statement to the U.S. Securities and Exchange Commission (SEC) for a public offering to list American depositary receipts (ADRs).

Samsung Electronics preferred shares (2.83%), Hyundai Motor (4.07%), LG Energy Solution (0.76%), SK Square (5.21%), Samsung Biologics (2.78%), Hanwha Aerospace (1.2%), and Doosan Enerbility (2.2%) were also higher.

The KOSDAQ also extended gains for a second day. At this time, the KOSDAQ was up 17.98 points (1.6%) from the previous session at 1,139.42. In the KOSDAQ market, retail investors logged net buying of 124.6 billion won, while foreigners and institutions were net sellers of 64.3 billion won and 55.7 billion won, respectively.

Samchundang Pharm, the No. 1 KOSDAQ stock by market cap that has entered the “emperor stock” (1 million won per share) club, was surging 8.23% at this time. Buying interest is seen as flowing in on expectations for its oral insulin under development.

Kakao Games was up 9.08%. Kakao Games disclosed that its largest shareholder changed from Kakao to LINE Yahoo through new share issuance and convertible bonds. Pearl Abyss was sharply rebounding by around 15% following news that global sales of “Crimson Desert” surpassed 3 million copies.

The won-dollar exchange rate opened lower. In the Seoul foreign exchange market, the won-dollar rate opened at 1,493.0 won, down 2.2 won from the previous session.

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