Kospi Set to Extend Gains After Trump Agrees to Two-Week Halt in Iran Attacks

Source

Korea Economic Daily

Summary

President Donald Trump’s agreement to a two-week halt in attacks on Iran is expected to add momentum to the Kospi’s gains.
Heavyweight shares including Samsung Electronics, SK Hynix, Hyundai Motor, and Hanwha Aerospace advanced, while retail, foreign and institutional investors all posted active net buying in those stocks.
Han Ji-young of Kiwoom Securities said the Kospi is likely to open higher as war risks appear to be peaking, helped by gains in U.S. indexes, Nasdaq futures, and U.S. semiconductor stocks.

Forecast Trend Report by Period

All three major U.S. stock indexes rise

Trump and Iran signal willingness to end the war

*Samsung Electronics headquarters in Seoul’s Seocho-dong district. Photo: Kim Beom-jun, Korea Economic Daily*

South Korea’s Kospi appears set to extend its gains. The benchmark has swung in recent sessions amid geopolitical tensions, but momentum may build after President Donald Trump agreed to suspend attacks on Iran for two weeks.

According to the Korea Exchange, the Kospi closed 0.82% higher at 5,494.78 on July 7. The index opened up 1.87% at 5,552.19 and rose as high as 5,594.90 in early trading. It later trimmed those gains and briefly turned lower before reversing upward late in the session. Most large-cap stocks advanced. Samsung Electronics rose 1.76% after posting strong first-quarter earnings. SK Hynix gained 3.39%, Hyundai Motor rose 0.85%, Hanwha Aerospace jumped 6%, Samsung Biologics added 1.99%, and SK Square climbed 2.46%.

Retail investors were the biggest net buyers of Samsung Electronics, purchasing 58 billion won ($42 million) worth of shares, followed by Samsung Electronics preferred shares at 49 billion won ($35.5 million). Hyundai Motor ranked third at 43 billion won ($31.2 million), and LG Electronics was fourth at 36 billion won ($26.1 million). Foreign investors were net buyers of SK Hynix worth 532 billion won ($385.5 million), followed by Hanwha Aerospace at 148 billion won ($107.2 million) and Samchundang Pharm at 69 billion won ($50 million). Institutional investors’ top net purchases were Samsung Electronics at 113 billion won ($81.9 million), Samsung SDI at 49 billion won ($35.5 million), and LEENO Industrial at 22 billion won ($15.9 million).

U.S. stocks were mixed in New York on July 7. The Dow Jones Industrial Average fell 0.18% to 46,584.46. The S&P 500 rose 0.08% to 6,616.85, while the Nasdaq Composite added 0.10% to 22,017.85.

The Kospi is poised to rise on July 8 after Trump opted for a two-week pause. He agreed to the halt about 90 minutes before the deadline for what the article described as a final ultimatum to Iran, set for 9 a.m. Korea time on July 8. In a Truth Social post on July 7, Trump wrote, “Provided that Iran agrees to the full, immediate and safe opening of the Strait of Hormuz, I agree to suspend bombing and attacks on Iran for two weeks.” He added that the decision reflected the view that the U.S. had already exceeded all military objectives and was very close to a final agreement for long-term peace with Iran and peace in the Middle East.

According to Nextrade, Samsung Electronics was up 5.09% in premarket trading at about 8:05 a.m. SK Hynix gained 4.59%, Hyundai Motor rose 4.12%, SK Square advanced 6.21%, and Doosan Enerbility added 3.37%.

“The risk from the war appears to be peaking out,” Han Ji-young, an analyst at Kiwoom Securities, said. The Kospi is set to open higher, supported by U.S. indexes paring intraday losses, gains of more than 1% in Nasdaq futures, and solid performances by U.S. semiconductor stocks.

Cho Ah-ra, Korea Economic Daily reporter rrang123@hankyung.com