South Korea's stock market surged as a two-week ceasefire agreement between the United States and Iran coincided with Samsung Electronics' earnings surprise. The KOSPI breached the 2900 level intraday for the first time in 15 trading days, while Samsung Electronics (005930.KS) and SK hynix (000660.KS) reclaimed the symbolic "210,000 won Samsung" and "1 million won hynix" price levels. Market observers cautiously predicted a "relief rally" as corporate earnings consensus trends upward.
According to the Korea Exchange on the 8th, the KOSPI closed at 2872.34, up 377.56 points (6.87%) from the previous trading day. The index briefly surpassed the 2900 level intraday for the first time since the 18th of last month, approaching the 3000 milestone again. The KOSDAQ also finished trading at 1089.85, up 53.12 points (5.12%). Program trading sidecar mechanisms were triggered consecutively on both the main and secondary markets amid the early session surge.
The rebound is attributed to the simultaneous effect of eased geopolitical risks from the ceasefire agreement and expectations for improved semiconductor earnings. "Despite Samsung Electronics' better-than-expected results announced the previous day, market reaction was limited due to uncertainty from the Middle East situation," said Chung Yong-taek, head of IBK Investment & Securities Research Center. "As uncertainty eased, earnings were fully reflected in stock prices, amplifying the gains."
The rally's center of gravity was indeed on semiconductors. Samsung Electronics closed at 210,500 won, up 7.12% from the previous day, while SK hynix surged 12.77% to close at 1,033,300 won. Unlike the previous day when Samsung Electronics' announcement of 5.7 trillion won in first-quarter operating profit—an "earnings surprise"—drew limited price reaction, the market belatedly reflected earnings improvement expectations as ceasefire news was added. SK hynix (1.255 trillion won) and Samsung Electronics (505 billion won) were the top two stocks in foreign investor net purchases.
Other market-cap leaders also posted strong gains, including Hyundai Motor (005380.KS) up 7.40%, Doosan Enerbility (034020.KS) up 6.64%, Kia (000270.KS) up 5.57%, and KB Financial Group (105560.KS) up 6.34%. Construction stocks surged on Middle East reconstruction expectations, with Daewoo E&C up 30.0% and Hyundai E&C up 22.0%. Securities stocks including Korea Financial Holdings (up 12.2%) and Kiwoom Securities (up 13.2%) also rallied.
