On the 21st, the KOSPI closed higher for the first time in four trading days. Despite uncertainties both domestically and internationally, such as the emergence of a bubble theory in the artificial intelligence (AI) industry and weakening expectations for a U.S. interest rate cut, a rebound occurred due to bargain hunting. In particular, stocks in the nuclear power sector, which had plummeted due to the 'Czech nuclear power humiliation agreement' scandal, saw a noticeable recovery as buying surged.
On that day, the KOSPI index closed up 11.65 points (0.37%) at 3141.74. The index started at 3140.71, up 10.62 points (0.34%) from the previous session, and increased its gains. It even rose to 3166.54 during the trading day. The transaction volume was approximately 272.3 million shares, with a transaction value totaling 10.7 trillion won.
Institutions led the index's rise by stepping in to 'buy'. Starting with a net purchase of about 7.2 billion won, they ultimately bought a net worth of 210.1 billion won. Among institutional investors, financial investment companies sold a net 6.3 billion won, but investment trusts and pension funds chose to net buy. Foreign investors and individuals sold net 19.78 billion won each.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, 'Despite uncertainties such as the U.S. Federal Reserve's Jackson Hole meeting and tax reform proposals, the bargain hunting by institutional investors following a short-term drop has driven the stock market rebound.' He also said that foreign investors showed a buying advantage in the KOSPI 200 futures market.
The KOSPI index peaked at 3288.26 during the day on July 31, setting a new record, but has continued to decline this month. In particular, semiconductor stocks, which had led the domestic market, and stocks related to the so-called 'shipbuilding, defense, and nuclear power' sectors experienced ongoing poor performance, with the index briefly dropping below 3100 the previous day.
Thanks to bargain buying, stocks related to shipbuilding, defense, and nuclear power saw a rebound. In particular, there was a surge in buying for nuclear power stocks that had plummeted due to the scandal of reaching a humiliating agreement for nuclear power exports with the U.S. company Westinghouse early this year. KEPCO E&C's stock price rose by more than 15%, and Doosan Enerbility's stock price also increased.
Stocks in the defense and shipbuilding sectors also rose. Market forecasts suggest that global demand for weapons will remain strong regardless of the possibility of a peace settlement between Russia and Ukraine, and there are expectations that President Lee Jae-myung will discuss cooperation in shipbuilding with the Donald Trump administration during his visit to the U.S. next week, benefiting both sectors.
Hanwha Aerospace, considered a leading defense stock in the KOSPI, saw its stock price rise by nearly 3%, while stocks of Hyundai Rotem, LIG Nex1, Hanwha Systems, SNT Dynamics, and Poongsan all rose. Shipbuilding stocks like Hanwha Ocean and HD Hyundai Heavy Industries also closed higher.
In addition, Samsung Electronics, the top company by market capitalization on the KOSPI, saw its stock price increase. Despite weakness in U.S. technology stocks, some foreign reports indicated that Samsung's high bandwidth memory (HBM) 4 samples had passed performance tests by NVIDIA, serving as a positive factor. However, SK hynix's stock price fell due to overlapping negative factors related to the AI bubble theory and performance pay disputes.
Additionally, the petrochemical industry is preparing joint survival plans with government support, referred to as news of restructuring in the petrochemical sector, leading to increases in stock prices of LOTTE Chemical and LG CHEM. While securities stocks also showed strength, stock prices of LG Energy Solution, Samsung Biologics, and Kia decreased.
The KOSDAQ index closed slightly lower. It recorded a drop of 0.37 points (0.05%) from the previous day, closing at 777.24. After starting at 780.32, up 2.71 points (0.35%) from the previous session, it turned to a decline. Individuals net bought 196.3 billion won, but institutions and foreigners sold a net 94 billion won and 90.9 billion won, respectively.
Meanwhile, the top KOSDAQ stocks showed mixed results. While stock prices of Alteogen, LigaChem Biosciences, and Sam Chun Dang Pharm fell, the prices of Peptron, PharmaResearch, and HLB rose, displaying differentiation among bio stocks. Stock prices of Ecopro and ECOPRO BM also decreased.
On the other hand, the won-dollar exchange rate in the Seoul foreign exchange market rose by 1.90 won (0.14%) to record 1399.1 won as of 4 p.m. Kang Jin-hyuk, a researcher at Shinhan Investment Corp., stated, 'The hawkish stance revealed in the July Federal Reserve's monetary policy decision meeting minutes is leading to a strong dollar.'