KOSPI pares gains, closes lower amid looming Iran deadline
The KOSPI, South Korea's benchmark stock index, closed with pared gains on the 7th as the deadline set by the U.S. President for Iran-related negotiations approached, despite Samsung Electronics announcing its highest-ever quarterly earnings. The KOSPI finished trading up 44.45 points (0.82%) at 5494.78. The index opened 1.87% higher at 5552.19 and surged to 5594.90 in early trading. However, it gradually gave back its gains, at one point turning negative, before returning to a rally late in the session, though its overall gains were limited.
In terms of trading volume, foreign investors were net buyers of 409 billion won in the KOSPI market, driving the index's rise. Conversely, individual and institutional investors were net sellers of 342.7 billion won and 414.1 billion won, respectively, capping the upside. Foreign investors also showed a slight net buying preference in the KOSPI 200 futures market.
Ahead of President Trump's negotiation deadline, set for 9 a.m. Korean time on the 8th, prospects for a compromise between the U.S. and Iran led all three major indices on the New York Stock Exchange to rise overnight, a trend that was reflected in the domestic market. However, the market's caution was also at play, as President Trump warned of strikes on Iran's energy facilities and bridges if negotiations failed.
In Seoul's foreign exchange market, the won-dollar exchange rate closed at 1504.2 won, down 2.1 won from the previous trading day.
Among individual stocks, Samsung Electronics briefly recovered the 200,000 won mark in early trading immediately after announcing its record-breaking earnings, but later gave back its gains to close in the 190,000 won range. Samsung Electronics, which had risen for three consecutive trading days, saw its market capitalization expand to 25.69% of the KOSPI's total, the highest level since March 2020. SK Hynix rose over 3% to close at 910,000 won, while Samsung Biologics and Samsung C&T also showed strength. Defense stocks such as Hanwha Aerospace also firmed amid ongoing geopolitical tensions.
By sector, electronics, construction, and IT saw gains, while entertainment, culture, securities, and food and beverage sectors declined. The KOSDAQ index closed down 10.64 points (1.02%) at 1036.73, showing a divergent trend from the KOSPI. On the KOSDAQ market, individual and institutional investors were net sellers of 31.9 billion won and 125.1 billion won, respectively, while foreign investors were net buyers of 182.2 billion won.