Kospi Reclaims 8,700 on US-Iran Peace Deal, Oil Drop; Financial Shares Hit 52-Week Highs
Summary
- The Kospi index reclaimed the 8,700 level in early trading, lifted by the US-Iran peace agreement and a drop in international oil prices.
- On the main stock market, retail investors were net buyers of 294.1 billion won, while foreign investors and institutional investors were net sellers.
- Amid expectations of interest-rate increases in the second half, KB Financial and Hana Financial Group hit 52-week highs, while the Kosdaq index traded in a narrow range.
Forecast Trend Report by Period
Kosdaq slips
South Korea’s Kospi rose back above the 8,700 mark in early trading on June 16, lifted by news of a US-Iran peace agreement and falling crude prices.
As of 9:04 a.m., the benchmark index was up 1.86% from the previous session at 8,705.02.
The early gain followed signs that Washington and Tehran had reached an agreement to end the war. In a media interview, US Vice President JD Vance, the chief US negotiator with Iran, and senior US officials said the two sides electronically signed a memorandum of understanding on June 14. The electronic signing came ahead of a formal ceremony set for June 19 in Geneva, Switzerland.
The development also sent oil prices lower. Brent crude, the global benchmark, settled 4.9% lower at $83.20 a barrel, while West Texas Intermediate fell 4.8% to $80.75. Both closed at their lowest levels since March 10, when the war was in its early stages.
On the Kospi, retail investors were net buyers of 294.1 billion won, while foreign and institutional investors were net sellers of 49 billion won and 234.8 billion won, respectively.
Most large-cap shares were higher. Samsung Electronics and SK Hynix, the market’s two biggest chipmakers, rose 1.48% and 3.63%, respectively. The gains tracked a sharp overnight rally in semiconductor stocks on Wall Street, where Micron Technology climbed more than 10%.
LIG Defense & Aerospace surged more than 18% in early trading on expectations for orders from Europe. KB Financial gained 5.54% and Hana Financial Group rose 3.48%, with both hitting fresh 52-week highs on expectations of interest-rate increases in the second half.
The Kosdaq was little changed. As of that time, the index was down 0.06% at 1,033.43. On the Kosdaq, retail investors were net buyers of 233.8 billion won, while foreign and institutional investors were net sellers of 172.2 billion won and 55.7 billion won, respectively.
The won opened lower against the dollar. In Seoul trading, the currency opened at 1,513.6 won per dollar, up 2.5 won from the previous session.
Noh Jung-dong, Hankyung.com reporter dong2@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
