The KOSPI is expected to continue its volatile trading on June 22 as investors monitor the ongoing negotiations between the United States and Iran. With geopolitical risks in the Middle East still unresolved, the market is likely to feel the pressure from recent sharp gains, affecting investor sentiment.
Last week, the U.S. stock market was closed in observance of Juneteenth, a federal holiday. Attention is now focused on the follow-up negotiations regarding the memorandum of understanding (MOU) for peace between the U.S. and Iran.
On June 21, the U.S. and Iran began negotiations in Switzerland to implement the MOU. However, the talks faced immediate challenges. President Donald Trump warned via his social media platform, Truth Social, that if Iran fails to control the Iran-aligned militant group Hezbollah, the U.S. would respond with strong measures, escalating tensions once again.
Ongoing clashes between Israel and Hezbollah add to the uncertainty surrounding the negotiations between the U.S. and Iran, suggesting that this uncertainty will persist for the time being.
On this day, the domestic market is likely to seek direction while keeping an eye on the progress of negotiations and developments in the Middle East.
As of 8:14 a.m., shares of Samsung Electronics were trading at 349,000 won, down 1.41% from the previous trading day. In contrast, SK Hynix saw a 0.69% increase, trading at 2,783,000 won.
On June 19, the KOSPI closed lower for the first time in seven sessions, reflecting concerns over the recent rapid gains. The index finished at 9,052.42, down 0.13%. It had briefly reached a record high of 9,385.59 during the day but then reversed course, dropping to as low as 8,831.72, indicating high volatility.
Han Ji-young, a researcher at Kiwoom Securities, noted, "News that could trigger anxiety, such as the controversy over U.S. Vice President JD Vance's delayed departure, may emerge this week regarding the follow-up negotiations between the U.S. and Iran."
Additionally, there is growing caution regarding the semiconductor stocks that have driven the recent market rise, as their prices have surged in a short period. One analyst stated, "While it may be a rational choice to concentrate market supply on semiconductors, we must also consider the potential temporary side effects of this excessive concentration during the week."
* This article has been translated by AI.
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