Amid a lack of upward momentum in global stock markets, the domestic stock market continued to show a dull trend. This week, due to the upcoming earnings announcement from NVIDIA, which could assess whether the argument about the artificial intelligence (AI) bubble is true, as well as the release of price indicators preferred by the U.S. Federal Reserve, it is analyzed that a wait-and-see sentiment is dominating the market.
On the 27th, the KOSPI index recorded a rise of 7.80 points (0.25%) to 3187.16 compared to the previous transaction day. The index opened at 3185.87, up 6.51 points (0.20%) from the previous day, but then turned to a downturn, dropping to 3165.77 at one point during the day. After climbing up to 3189.31, it then fell back and fluctuated around the 3180 level afterward.
In the securities market, individual and institutional investors showed a buying advantage of 608 billion won and 278 billion won, respectively. However, foreign investors have net sold both cash and futures for two consecutive transactions. On this day, foreigners net sold 203.1 billion won worth of cash stocks, limiting the upward trend, and also sold 132.7 billion won worth of KOSPI200 futures.
Overnight, the three major U.S. stock indices, the Dow Jones 30, S&P 500, and Nasdaq, closed slightly higher, reversing the previous day's declines. Concerns grew over the independence issue following U.S. President Donald Trump's dismissal of Federal Reserve Governor Lisa Cook; however, the anticipation of accelerating interest rate cuts led to a decrease in short-term interest rates.
Nevertheless, the domestic stock market moved limitedly within a stable range. Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, "In a situation where there is a general lack of momentum in the stock market, the dull trend has continued as issues that have already been disclosed are being reinterpreted, resulting in repeated fluctuations among sectors."
On this day, Samsung Electronics, the number one company by market capitalization in the securities market, finished trading at 70,600 won, up 300 won (0.43%) from the previous day, while SK hynix ended down 1,500 won (0.57%) at 260,000 won. The trends among other top market capitalization stocks were mixed. While Samsung Biologics, Hanwha Aerospace, and Hyundai Motor rose, LG Energy Solution, Doosan Enerbility, Celltrion, and NAVER fell.
The shipbuilding sector generally closed higher. This is interpreted as being fueled by President Lee Jae-myung's visit to the Philippine shipyard and expectations for industrial cooperation between Korea and the United States. Additionally, the consortium of Hanwha Ocean and HD Hyundai Heavy Industries became a finalist in the 60 trillion won Canadian submarine project, which also boosted the shipbuilding equipment sectors, including STX Engine and Samsung Heavy Industries.
Following the news that Apple will unveil the iPhone 17 series at its Apple Campus event on the 9th of next month, the parts industry saw gains. In the securities market, LG Innotek and BH rose by 3.93% and 7.42%, respectively, while in the KOSDAQ market, Duksan Neolux closed up 6.31%.
Korean Air, which signed a 70 trillion won contract to purchase aircraft from Boeing the previous day, finished trading lower. It appears that an investment amounting to eight times the company's market capitalization has raised concerns about being excessive. Alongside this, the aviation sector as a whole, including Hanjin KAL and Asiana Airlines, fell.
The KOSDAQ index closed at 801.72, up 0.06 points (0.01%) from the previous day. The index started the session at 802.57, up 0.91 points (0.11%), and after fluctuating, it finished in a stable range. In the KOSDAQ market, individuals net bought 119.4 billion won worth of stocks, while foreign and institutional investors had net selling advantages of 96.5 billion won and 10.5 billion won, respectively.
Among the top market capitalization stocks in the KOSDAQ market, stocks of Alteogen, Ecopro BM, Ecopro, and PharmaResearch fell. The robotics sector, which showed strength for the last two consecutive trading days, experienced profit-taking, resulting in declines for ROBOTIS and Yuil Robotics.
Lee Jae-won, a researcher at Shinhan Investment Corp, noted, "In the situation where additional confirmations are needed for the U.S. July personal consumption expenditure and August employment and consumer price indicators, the recent spotlight on the AI bubble has highlighted that NVIDIA's performance and guidance will also impact the domestic semiconductor and AI investment sentiment."
On this day, the weekly closing price of the won against the U.S. dollar in the Seoul foreign exchange market (as of 3:30 p.m.) was recorded at 1,396.3 won, up 0.5 won from the previous day.