KOSPI rebounds more than 2% on hopes of Hormuz reopening; foreign investors turn net buyers

Samsung Electronics·SK hynix up 4–5%

FX rate ends at 1,505 won, down 14.5 won

The KOSPI rebounded more than 2% on expectations that the Strait of Hormuz may reopen. Foreign investors turned net buyers in the KOSPI for the first time since the 18th of last month.

On the 3rd, the KOSPI closed at 5,377.3, up 143.25 points (2.74%) from the previous session. It rose to the 5,400 level intraday, but gains were capped after reports that the U.S. carried out airstrikes on a highway bridge linking Iran’s capital Tehran with a nearby city.

The day’s rally was attributed to news that Iran is preparing a protocol to monitor vessels passing through Oman and the Strait of Hormuz.

Kazem Gharibabadi, Iran’s deputy foreign minister for legal and international affairs, said in an interview with Russia’s Sputnik News that day, “We are drafting a new protocol with Oman to monitor ship traffic through the Strait of Hormuz.”

He added that even in peacetime, vessels wishing to transit the strait need coordination with coastal states Iran and Oman, explaining that “this is not a restriction, but aims to ensure safe passage and provide better services.”

Investor sentiment was also bolstered by the fact that around 40 countries, including South Korea, are seeking ways to keep the Strait of Hormuz open, including by convening a meeting of foreign ministers.

In the main board market, foreign investors posted net buying of 949.0 billion won. They returned to net buying in the KOSPI for the first time in 12 sessions since the 18th of last month. Institutional investors were also net buyers, with a net purchase of 857.6 billion won. Retail investors posted net selling of 2.416 trillion won.

Most large-cap KOSPI names rose. Semiconductor heavyweights Samsung Electronics and SK hynix jumped 4.37% and 5.54%, respectively. Samsung Electronics preferred shares, Hyundai Motor, Hanwha Aerospace, SK Square and Doosan Enerbility also advanced. HD Hyundai Heavy Industries, which had recently slumped, surged 9.23% on bargain hunting.

Renewable energy-related stocks rallied. HD Hyundai Energy Solutions (30%), SK Eternix (24%), Shinsung E&G (25.27%), CS Wind (18.34%), Hanwha Solutions (9.69%) and OCI Holdings (11.46%) all posted sharp gains.

The KOSDAQ also rose. The index ended the session at 1,063.75, up 0.7% from the previous day. In the KOSDAQ market, retail investors recorded net buying of 495.6 billion won, while foreign and institutional investors were net sellers of 272.0 billion won and 228.7 billion won, respectively.

Samchundang Pharm, which had recently faced controversy over the enforceability of a contract, rebounded 6.24%.

The won-dollar exchange rate fell. In the Seoul FX market, the won-dollar rate ended daytime trading at 1,505.2 won, down 14.5 won from the previous session.

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