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Kospi closes over 3,100 at easing Middle East tensions spur buying

Published: 24 Jun. 2025, 17:52 Updated: 24 Jun. 2025, 19:48

A board at the Korea Exchange Seoul office in western Seoul shows the Kospi closing at 3,103.64 on June 24, up 2.96 percent from the previous trading day. [YONHAP]

Korea's bourse Kospi closed above the 3,100 mark for the first time in nearly four years, driven by easing geopolitical tensions in the Middle East and a rebound in foreign and institutional buying.

According to the Korea Exchange, the Kospi rose 2.96 percent to close at 3,103.64 on Tuesday, surpassing the 3,100 threshold for the first time since Sept. 27, 2021, when it ended at 3,133.64. The Kosdaq also gained 2.06 percent to close at 800.93 — the first time in 11 months that it finished above 800.

The rally followed signs of a cease-fire in the clash between Iran and Israel, which had rattled global stock markets. On Monday, U.S. President Donald Trump announced via Truth Social that a cease-fire between Israel and Iran was now in place. The Israeli Prime Minister’s Office confirmed the country’s agreement to Trump’s proposal.

The announcements helped ease concerns over oil prices and currency volatility. West Texas Intermediate crude traded at $68.51 per barrel, down 7.22 percent from the previous session’s $73.84.

Fears of a blockade in the Strait of Hormuz — through which about 20 to 30 percent of the world’s oil and liquefied natural gas shipments pass — also subsided. The won strengthened to 1,360.2 to the dollar, gaining 24.1 won from the previous day.

Stabilizing energy prices and exchange rates spurred buying from foreign and institutional investors. Individual investors, who had purchased 1.38 trillion won in stocks the day before, sold 548.5 billion won on Tuesday, while foreigners and institutions net bought 323.3 billion won and 286.2 billion won, respectively.

Battery shares stood out among individual stocks.

“Tesla’s robotaxi service received a positive response, lifting its share price by 8.2 percent,” said Lee Jae-won, an analyst at Shinhan Securities. “The secondary battery value chain rose in tandem.”

On the Kospi, Samsung SDI gained 4.43 percent and LG Energy Solution rose 2.21 percent. On the Kosdaq, EcoPro surged 14.12 percent and EcoPro BM climbed 6.05 percent.

President Donald Trump speaks during the NATO summit, Dec. 4, 2019, in Watford, England. [AP/YONHAP]

Semiconductor giants also rallied. Samsung Electronics rose 4.14 percent and SK hynix jumped 7.71 percent, buoyed by expectations that U.S. chipmaker Micron will post stronger-than-expected revenue of $8.8 billion for the third quarter of its 2025 fiscal year. The company, which shares similar products and clients with Samsung Electronics and SK hynix, is often viewed as a bellwether for the chip industry.

Samsung Electronics closed at 60,500 won, returning to the 60,000 won level for the first time since March 28. SK hynix ended at 278,500 won, up 7.32 percent, pushing its market capitalization past 200 trillion won for the first time to 202.7 trillion won, narrowing the gap with Samsung Electronics at 358.1 trillion won.

Construction stocks, considered beneficiaries of post-conflict reconstruction, also gained. GS Engineering & Construction rose 2.33 percent and Daewoo Engineering & Construction added 1.8 percent. Banking shares climbed as well, buoyed by the Democratic Party’s launch of a special committee on President Lee Jae Myung's “Kospi 5000” vision and the party's push for commercial law reform. KB Financial Group rose 4.37 percent and Woori Financial Group added 3.98 percent.

A signboard at a Hana Bank dealing room in central Seoul shows the Kospi closing at 3,103.64 on June 24, up 2.96 percent from the previous trading day. [NEWS1]

The upbeat sentiment has prompted forecasts that the Kospi could reach 3,600 in the first half of next year.

“If the government’s capital market reform policies are legislated as planned and companies actively return value to shareholders through buybacks and dividends, the Kospi could rise to 3,600 in the first half of next year,” said Kim Byung-yeon, head of investment strategy at NH Investment & Securities, during a press briefing at the Korea Exchange’s Seoul office on Tuesday.

However, Kim cautioned that short-term corrections are possible in the second half of this year "due to uncertainties such as the end of the U.S. tariff grace period on July 9 and the timing of rate cuts by the U.S. Federal Reserve."

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HEO JEONG-WON [[email protected]]