Expectations of oil price stability boost KOSPI for second day
Closing market conditions at the dealing room of Shinhan Bank headquarters in Jung-gu, Seoul on March 17. (Photo courtesy of Shinhan Bank)
The KOSPI rose more than 1%, climbing for the second consecutive day, buoyed by expectations of international oil price stabilization and positive momentum from Nvidia.
On March 17, the KOSPI closed at 5,640.48, up 90.63 points (1.63%) from the previous day. It recovered the 5,600 level on a closing basis for the first time in four trading days since the 11th (5,609.95).
The index started the day with a sharp gain of 161.95 points (2.92%), and on the back of plunging oil prices and strength in the semiconductor sector, it traded above the 5,700 level for the first time in two weeks since the 3rd. However, in the latter part of the session, SK Hynix turned to decline, and the index gave back some of its gains.
Lee Kyung-min, a researcher at Daishin Securities, explained, “Jensen Huang, CEO of Nvidia, revealed details of new products including Grok3 LPU and Feynman at GTC 2026, and projected $1 trillion in revenue opportunities by next year,” adding, “As expectations for AI (artificial intelligence) expanded, U.S. stock markets closed higher led by technology stocks including Nvidia, and domestically, expectations for collaboration were reflected in semiconductors and automobiles that participated in Nvidia GTC.”
Researcher Lee said, “Risk appetite also recovered following the decline in international oil prices,” and evaluated, “U.S. Treasury Secretary Scott Bessent stated that he would intentionally allow the flow of Iranian tankers passing through the Strait of Hormuz, and U.S. President Donald Trump also continued making statements related to Strait of Hormuz escorts, showing continued efforts to manage energy transportation networks and oil price trends.”
He added, “This ultimately suggests that in a situation where rising crude oil prices are leading to a decline in President Trump’s approval ratings ahead of the midterm elections, it is difficult to continue a confrontational stance with Iran while accepting oil price increases,” and “As international oil prices subsequently declined, inflation concerns eased, and risk-on sentiment also recovered.”
On this day in the securities market, institutions alone purchased 733.8 billion won (approximately $492.4 million) worth of shares. Meanwhile, foreigners and individuals sold 174.7 billion won and 570.2 billion won respectively.
Major market-cap stocks showed mixed results. Samsung Electronics closed at 193,900 won, up 5,200 won (2.76%), while SK Hynix ended the session at 970,000 won, showing slight weakness. Meanwhile, Hyundai Motor, LG Energy Solution, SK Square, Kia, and Celltrion showed strength in the 3-4% range, while Hanwha Aerospace fell more than 5% and Doosan Enerbility (-1.23%) also declined.
The KOSDAQ index closed at 1,136.94, down 1.35 points (0.12%).
Among KOSDAQ top market-cap stocks, Kolon TissueGene, Leeno Industrial, Peptron, and Wonik IPS fell by around 1-2%, while HLB and LegoChem Biosciences jumped more than 4%. Ecopro, Ecopro BM, Samchundang Pharmaceutical, and ABL Bio also showed strength in the 2-3% range.
Meanwhile, the won-dollar exchange rate closed at 1,493.6 won on the 17th. It fell 3.9 won from the previous day.
This is interpreted as the effect of easing tensions between the U.S./Israel and Iran. When geopolitical risks ease, the appetite to invest in risk assets tends to revive, and the value of the won, which is not a reserve currency, tends to rise.
Overnight, news emerged that the U.S. and Iran had reactivated their dialogue channel. U.S. political media outlet Axios, citing U.S. officials, reported that direct communication between U.S. Middle East Envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi had resumed. It also reported that Foreign Minister Araghchi sent a text message to Envoy Witkoff focused on a ceasefire.
However, conflicting reports also emerged. Non-profit investigative media outlet Drop Site News reported that Envoy Witkoff sent a text message to Foreign Minister Araghchi, but Foreign Minister Araghchi ignored it.
The market appears focused on the fact that the U.S. and Iran have begun dialogue. Overnight, all three major indices rose in unison on the New York Stock Exchange. On the New York Stock Exchange, the Dow Jones 30 Industrial Average closed at 46,946.41, up 387.94 points (0.83%) from the previous session.
The Standard & Poor’s (S&P) 500 index closed at 6,699.38, up 67.19 points (1.01%) from the previous session, and the tech-heavy Nasdaq Composite index closed at 22,374.178, up 268.82 points (1.22%) from the previous session.
Park Sang-hyun, a researcher at iM Securities, said, “If the Iran situation enters a resolution phase, that is, if the likelihood of the Strait of Hormuz reopening increases, the exchange rate will also stabilize downward rapidly along with further declines in oil prices.”
Kim Eun-jin
pr@businesskorea.co.kr
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