South Korean Stocks Hit Record High on Profit Optimism, Extended US-Iran Ceasefire

Lead

SEOUL — South Korean stocks closed at a fresh record high Thursday, approaching the 6,500-point level, as investors focused on corporate earnings following the United States' indefinite extension of its ceasefire with Iran. The Korea Composite Stock Price Index (KOSPI) rose 57.88 points, or 0.9 percent, to close at 6,475.81, according to Yonhap News Agency.

The index opened 1.1 percent higher, tracking overnight gains on Wall Street, and remained volatile throughout the session, briefly dipping into negative territory before recovering to close with a modest gain. It surpassed its previous all-time high for the first time in about two months Monday and went on to set new record highs for three consecutive trading sessions.

Coverage Comparison

Both reports from Yonhap, a leading South Korean wire service, provided identical market statistics and attributed the rally to the same set of factors: the US decision to extend a two-week ceasefire with Iran indefinitely, robust corporate earnings, and better-than-expected domestic economic growth. There was no divergence in the factual details or the sources cited between the two versions, though one report included a note on bond yields.

The local currency fell against the US dollar, according to one report. Trade volume was moderate at 1.03 billion shares worth 39.86 trillion won (US$26.91 billion), with decliners outnumbering advancers 504 to 357.

Key Claims

• The KOSPI gained 0.9 percent to close at 6,475.81 on April 23, a record high.
• The US extended its ceasefire with Iran indefinitely amid stalled peace talks.
• South Korea's first-quarter GDP grew 1.7 percent, the fastest quarterly expansion in 5 1/2 years.
• Peter Tuchman, a veteran trader at the New York Stock Exchange, said the market impact of the conflict has already run its course, with oil prices remaining the only variable.
• Tensions persist in the Strait of Hormuz due to a US blockade of Iranian ports and Iranian seizures of container ships.

Perspectives

The market rally was broad-based. Retail investors were net buyers of 448.38 billion won worth of shares, while institutional and foreign investors sold a net 327.46 billion won and 52.91 billion won worth of shares, respectively.

Investor sentiment was buoyed after US President Donald Trump announced the extension of the two-week ceasefire, according to Yonhap. The ceasefire decision came amid stalled peace talks aimed at ending the conflict.

Sentiment was also supported by data showing that South Korea's real gross domestic product (GDP) posted its fastest quarterly expansion in 5 1/2 years in the first quarter, with 1.7 percent growth, demonstrating resilience despite the ongoing crisis.

Peter Tuchman, a veteran trader at the New York Stock Exchange, said the market impact of the conflict has already run its course, adding that the only remaining variable is oil prices.

Despite the ceasefire, tensions remain high in the Strait of Hormuz, as a US blockade of Iranian ports continues and Iranian forces have seized container ships in the strategic waterway, pushing up global oil prices amid supply disruptions, according to foreign media reports attributed by Yonhap.