Iran Re-blocks Strait of Hormuz, Escalating Middle East Crisis

Iran has heightened tensions in the Middle East by re-closing the Strait of Hormuz, a vital maritime transport route, in response to US economic sanctions. Despite the growing geopolitical uncertainty in the region, the domestic stock market has shown strength, defying fluctuations in international oil prices.

Analysts suggest that the market is entering a phase of sustained earnings-driven growth, with the earnings and order momentum of major companies, previously overshadowed by external issues, beginning to exert upward pressure. In particular, upcoming first-quarter earnings reports from key companies like SK Hynix and LG Energy Solution, along with their new contract prospects, are expected to drive stock market gains, heralding a period where stock prices move in line with corporate performance.

On the 20th, the KOSPI index closed at 6219.09, up 27.17 points (0.44%) from the previous trading day, while the KOSDAQ index finished at 1174.85, an increase of 4.81 points (0.41%). The won-dollar exchange rate traded at 1477.2 won per dollar, down 6.3 won. On the stock market, institutions were net buyers with 181.6 billion won, while on the KOSDAQ market, foreigners bought 18.4 billion won and individuals purchased 823.1 billion won.

Major stocks including SK Hynix, LG Energy Solution, SK Square, Samsung Biologics, Hanwha Aerospace, and Doosan Enerbility, all poised to release their first-quarter earnings, showed strong performance. The domestic stock market has maintained its strength as its sensitivity to geopolitical risks gradually subsides. An analyst at Daishin Securities noted that volatility in international oil prices is widening due to short-term noise surrounding the Strait of Hormuz.