KOSPI Breaks 6,000 Mark… First Rebound Since Middle East War

For the first time since the outbreak of the Middle East war, the KOSPI index briefly reclaimed the 6,000 mark, showing an upward trend in the stock market. This is interpreted as a sign of somewhat recovered investor sentiment amid the recent unstable international situation. News that the US and Iran are attempting behind-the-scenes negotiations spread optimism through the market. However, as the war has not yet ended, market uncertainties persist, and cautious views regarding the possibility of increased volatility were also raised.

The KOSPI started the day up nearly 150 points and surpassed the 6,000 mark in early trading. It rose to 6,026 points in the afternoon but fell back below the 6,000 mark with a slight correction late in the session.

Foreign investors turned to a buying stance for the first time in three months, recording net purchases exceeding 5 trillion won this month. They showed concentrated buying in semiconductor-related stocks.

The strength in semiconductor stocks aligns with the overall global stock market trend, including the Philadelphia Semiconductor Index hitting a record high. Samsung Electronics settled in the mid-200,000 won range, while SK Hynix surpassed 1.1 million won, setting a new all-time high. Ahead of SK Hynix's earnings announcement next week, brokerage firms raised their target prices to as high as 1.9 million won.

The Philadelphia Semiconductor Index had already hit record highs before other markets, and the rebound trend in semiconductor stocks is appearing globally. The US S&P 500 and Nasdaq indices have returned to pre-Middle East war levels, and the Taiwan stock market has set new all-time highs. The KOSPI is also about 6% below its peak, indicating room for further gains.

Although the market has become somewhat accustomed to the war that has lasted for over a month, it was too early to feel secure. As the war is not over, increased sensitivity to negative news and rising price burdens upon entering the 6,000 index level could lead to expanded volatility. International oil prices fell back below $100 per barrel, and the exchange rate also found relative stability. These conditions lent support to the spread of optimism.