The KOSPI and KOSDAQ indexes recovered early losses on the 6th, closing steady and up, respectively. Concerns over tariffs resurfaced, but investor sentiment improved as listed companies announced better-than-expected earnings.
The KOSPI index finished the day at 3198.14, the same level as the previous day. The KOSDAQ index closed up 4.89 points (0.61%) at 803.49, continuing an upward trend for the third straight trading day and exceeding the 800 mark. In the KOSPI market, only individuals showed a buying advantage, while in the KOSDAQ market, only institutions entered a buying phase.
Both the KOSPI and KOSDAQ indexes started lower that day. The impact of U.S. President Donald Trump's threats to soon announce tariffs on semiconductor and pharmaceutical items was significant. Samsung Electronics and SK hynix, which rank first and second in market capitalization in the KOSPI market, fell. Pharmaceutical stocks, including SK Biopharm and Samsung Biologics, also weakened. Alteogen, the 'leading stock' in the KOSDAQ market, also struggled.
However, some stocks reported 'surprise earnings,' providing momentum for the index rebound. The beauty company APR announced that its consolidated operating profit for the second quarter (April to June) was estimated at 84.6 billion won, which was 44% higher than the market expectation of 58.6 billion won. After the earnings announcement, APR rose to 224,000 won, setting a new all-time high.
Hyundai Department Store and Ecopro also saw their stock prices rise as they announced results that exceeded market expectations. Lee Jae-won, a researcher at Shinhan Investment Corp, noted, "Even with ongoing concerns about tariffs, there was a trend of differentiation focused on stocks that reported good earnings."
The government allowed visa-free entry for Chinese group tourists from the end of September to June 30, 2026, leading relevant stocks to show strength. Hotel stocks, including GS P&L, West T&D, and Hotel Shilla, as well as travel stocks like Yellow Balloon Tour, Very Good Tour, and Modetour Network, and cosmetics stocks such as Hankook Cosmetics and TONYMOLY, were representative.
Shares in banking, securities, and insurance, which initially lagged following the announcement of the first tax reform plan by the Lee Jae-myung administration, also rose. This increase is attributed to expectations that the separate taxation on dividend income and the criteria for capital gains tax for major shareholders will be improved from the original proposal. The market anticipates the ruling Democratic Party of Korea may present a revised proposal as early as the 7th.
The market is expected to see a cautious trend until details regarding the tariff items and the direction of the tax reform plan are released. Lee Kyung-min, a researcher at DAISHIN SECURITIES, stated, "There are realistically limits to moving all overseas supply chains for semiconductors and pharmaceuticals into the U.S., and Korea is in a position to guarantee the most-favored-nation treatment in trade negotiations," adding, "In fact, a short-term decline can be utilized as a trading opportunity."
In the Seoul foreign exchange market, the won-dollar exchange rate closed at 1389.5 won, up 1.2 won from the previous day, marking the end of weekly transactions.