The KOSPI index closed slightly unchanged on the 11th, with factors for both rise and fall at play and a limited fluctuation range. The deadline for the expiration of the 'tariff truce' between the United States and China is just one day away, and variables like the U.S. economic indicators have increased investor caution. Conversely, the KOSDAQ index showed relative strength due to expectations of eased competition in the secondary battery sector, along with the return of Chinese tourists.
According to the Korea Exchange, the KOSPI index recorded a drop of 3.24 points (0.10%) from the previous trading day, closing at 3206.77. The index started at 3220.72, up 0.33% from the previous close, fluctuating within a range before finishing slightly lower.
In the securities market, foreign investors, who had been net sellers for the past two trading days, turned into net buyers, seeing a purchase advantage of 216.9 billion won. Meanwhile, individual and institutional investors recorded net sales of 142.4 billion won and 214.3 billion won, respectively. In the KOSPI200 futures market, foreign investors were net sellers of 240.8 billion won, while individual and institutional investors finished trading with buying advantages of 131.2 billion won and 143.5 billion won, respectively.
It seems that selling by disappointed investors occurred since the government and ruling party council failed to reach a conclusion regarding the criteria for the stock transfer tax for major shareholders. With the U.S. consumer price index (CPI) announcement for July scheduled for the 12th, concerns around tariffs on semiconductor items have also increased. However, foreign investors opted to buy following the rise in the U.S. stock market last week and the expectation of the end of the Ukraine-Russia war.
In the securities market, Samsung Electronics' decline limited the rise in market capitalization among top stocks. Samsung Electronics formed its opening price at 72,000 won but turned lower after failing to break through resistance. Hanwha Ocean, NAVER, and Celltrion also closed lower. In contrast, SK hynix and HANMI Semiconductor rose as Nvidia and AMD received approval to export artificial intelligence (AI) chips to China on the condition of paying 15% of their revenue to the U.S. government, bringing good news in the memory semiconductor (HBM) sector.
The nuclear power sector showed strength as news of strengthened cooperation in Vietnam's nuclear power and new cities, along with an impending contract with the U.S. company NuScale Power, was announced. Doosan Enerbility, Hyosung Heavy Industries, and other companies in the nuclear power sector rose.
The cosmetics sector plummeted due to poor earnings. d'Alba Global, which fell short of market expectations for its second-quarter operating profit, dropped nearly 20%. Similarly, SILICON2 announced results below market forecasts and fell by 18.44%. Kolmar Korea and COSMAX, as well as KOSDAQ-listed Cosmecca Korea, also saw declines due to heightened caution and profit-taking.
DL, DL E&C, and others dropped sharply due to construction site accidents and the impending bankruptcy of Yeochun NCC. Hanwha Solutions, holding equity in Yeochun NCC, also fell by 4.61%.
The KOSDAQ index closed at 811.85, up 2.58 points (0.32%) from the previous trading day. The index started at 810.51, up 0.15%, but turned lower early in the session before returning to a slightly strong stance. In the KOSDAQ market, foreign and institutional investors recorded net purchases of 53.2 billion won and 42.0 billion won, respectively. Individuals sold off 96.8 billion won.
Following last Friday (the 8th), the relative strength in the KOSDAQ market continued. Factors driving the KOSDAQ index's strength included a rebound in the undervalued secondary battery sector and optimism around K-culture, which supported the rise of entertainment stocks.
The news of a suspension of operations at a lithium mine operated by the Chinese battery company CATL increased expectations for resolving the oversupply of Chinese products, leading to sharp rises in companies like Enchem, Ecopro, and ECOPRO BM in the secondary battery sector. In the securities market, firms like COSMO AM&T, L&F, and POSCO FUTURE M also saw increases.
Alongside the 'K-Pop Demon Hunters' syndrome, the entertainment sector saw strong performances in the second quarter and expectations for the second half, with companies like YG Entertainment, JYP Ent., SME, and CJ ENM closing higher.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, 'The KOSDAQ has not been able to gain upward momentum compared to the KOSPI due to the poor performance of the secondary battery, biotechnology, and semiconductor materials sectors. However, recently during the cyclical rally, undervalued sectors have shown strong rebounds upon receiving positive news, indicating a trend toward alignment.' He added, 'Institutional investors are responding to profit realization through KOSPI sales and KOSDAQ purchases, followed by cyclical trading.'
On that day, the weekly closing transaction price of the exchange rate between the Korean won and the U.S. dollar (won-dollar exchange rate) in the Seoul foreign exchange market was recorded at 1388.0 won, down 1.6 won from the previous trading day.