The KOSPI failed to reclaim the 3200 level once again. Following a strong performance from the U.S. stock market overnight, it started above the 3200 mark but reversed course due to foreign selling. Fortunately, the stock prices of Samsung Electronics, HD Hyundai Heavy Industries, and Hanwha Ocean rose, providing support to the index.
On the 29th, the KOSPI closed at 3186.01, down 10.31 points (0.32%) from the previous transaction day. The index started at 3208.80, up 12.48 points (0.39%) from the previous session, raising expectations for a recovery above 3200, but soon reversed to a decline. It remained around the 3100 level for four consecutive days since the 25th.
Foreign investors led the index decline by net selling 372.1 billion won. This marked the fourth consecutive day of net selling, with foreigners also net selling 391.8 billion won in the KOSPI 200 futures market. Though individuals and institutions net bought 240.6 billion won and 72.9 billion won, respectively, it was insufficient to prevent the index from falling.
In the early trading session, there were high expectations that the KOSPI would recover from its recent declines and reclaim the 3200 level. This was due to recovery from the downturn of Nvidia's stock and Alphabet's announcement of data center investments, which had revived investor sentiment in semiconductors that had been ignited by concerns over artificial intelligence.
In particular, comments from Jensen Huang, CEO of Nvidia, that there was nothing to worry about regarding demand for artificial intelligence (AI) led to a 0.49% increase in the Philadelphia semiconductor index, which is composed of AI and semiconductor-related stocks. This contributed to the record high closing of the Standard & Poor's 500 index on the New York Stock Exchange.
Lee Kyung-min, a researcher at Daishin Securities, noted, "It seemed that the upward momentum of the U.S. stock market did not transmit to the domestic market." He mentioned, "With a weekend holiday approaching and the announcement of July's Personal Consumption Expenditures (PCE) report scheduled for tonight in the U.S., it seems that foreign investors' uncertainty-averse psychology has increased."
By stock, most of the major stocks by market capitalization on the KOSPI lit up in red. The large-cap stocks saw net selling of 435.5 billion won by foreign investors. Notably, news that Chinese electric vehicle manufacturer BYD had surpassed Tesla in the European market led to a more than 3% drop in LG Energy Solution's stock price.
In addition, most of the stock prices of top-tier stocks such as Samsung Biologics, Hanwha Aerospace, Hyundai Motor, KB Financial, Doosan Enerbility, Celltrion, and Naver fell. Among the top 30 stocks by market capitalization on the KOSPI, 21 stocks closed lower.
Fortunately, news of Tesla's first production of next-generation AI chips and continued expectations for the Korea-U.S. shipbuilding cooperation project helped raise the stock prices of shipbuilding stocks, alleviating downward pressure on the index. On that day, the stock prices of HD Hyundai Heavy Industries and Hanwha Ocean rose by 3.38% and 2%, respectively.
Meanwhile, the stock prices of Hyundai GLOVIS and Hyundai Mobis surged, attracting attention. Park Sang-cheol, a researcher at Yuanta Securities Korea, said, "The passage of the second revision of the Commercial Act in the National Assembly seems to have increased expectations for governance restructuring due to the expansion of the concentration voting system and separate election of audit committee members."
The KOSDAQ index also closed lower without breaking through the 800 mark, recording a drop of 1.52 points (0.19%) to 796.91. The index opened at 801.96, rising 3.53 points (0.44%), but turned to a decline. Foreigners led the index drop by net selling 42.2 billion won.
By stock, most of the major stocks by market capitalization in the KOSDAQ market, except for Alteogen, saw price declines. Among the top 30 stocks by market capitalization, including the leading secondary battery stock Ecopro BM, 20 stocks fell. Alteogen, ranked first by market capitalization, rose amid expectations for its transfer to the KOSPI.
Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate recorded 1389.7 won, up 4.4 won (0.32%) from the previous transaction day as of 3:39 p.m. Starting the day at 1385 won, down 2.6 won from the previous day, the rate turned upward.