On the 29th, the KOSPI index rose to the 2720 level, marking its highest level of the year. This is the first time the KOSPI index has surpassed the 2700 mark in 9 months since the global stock markets saw a sharp drop on the previous year’s August 'Black Monday.'
The stock market started off on an upward trend, buoyed by expectations that the Trump administration in the United States could halt reciprocal tariffs and a positive influence from Nvidia. The upward momentum accelerated after the Bank of Korea lowered its key interest rate by 0.25 percentage points during the session, and expectations that the new government following the presidential election would strengthen policies to support the stock market also lifted the index.
The KOSPI index closed at 2720.64, up 50.46 points (1.89%) from the previous day. While individual investors who had accumulated shares sold nearly 1 trillion won, foreigners and institutions bought a net 300 billion won and 700 billion won, respectively.
On the previous night, the U.S. International Trade Commission ruled that the Trump administration's reciprocal tariffs exceeded the government's authority. Expectations emerged that aggressive tariff imposition by the U.S. government against trade partners would be halted, and investment preference for risk assets increased.
As expected, the Monetary Policy Committee of the Bank of Korea lowered the key interest rate. Additionally, expectations for policies to stimulate the stock market grew with the start of early voting that day.
In the securities market, the large-cap stocks generally closed higher. Thanks to Nvidia’s strong performance, Samsung Electronics (up 0.36%) and SK hynix (up 1.92%) saw gains, and export-driven stocks such as Hyundai Motor (up 2.74%) and Kia (up 4.72%) rose amid expectations that tariffs from the U.S. could be halted. However, Samsung Biologics (down 0.19%) and LG Energy Solution (down 0.35%) closed lower.
In particular, the securities sector saw significant gains. Mirae Asset Securities closed up 23.2%, hitting its daily price limit shortly after the opening. Eugene Securities (up 16.58%), DAISHIN SECURITIES (up 9.47%), and DB Securities (up 9.08%) also closed higher.
As expectations for shareholder return and changes in governance structures under the stock market stimulus policy increased, the prices of holding companies also rose significantly. HS HYOSUNG (up 29.8%) closed at its price limit, while HD Hyundai (up 11.26%), Hanwha (up 10.22%), and LX Holdings (up 9.58%) also saw their stock prices increase.
The KOSDAQ index closed at 736.29, up 7.5 points (1.03%). In the KOSDAQ market, institutional buying was prominent. Institutions made net purchases worth 46 billion won, while individuals and foreigners sold off 27.6 billion won and 2.2 billion won, respectively.
In the KOSDAQ market, large-cap stocks also mostly closed higher. Alteogen (up 0.3%), ECOPRO BM (up 1.35%), HLB (up 1.48%), Ecopro (up 5.26%), and Rainbow Robotics (up 0.94%) saw their prices rise. Conversely, ABL Bio (down 2.38%), CLASSYS (down 1.03%), and Sam Chun Dang Pharm (down 1.47%) closed lower.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, “The U.S. federal court's temporary suspension of President Trump’s execution of the reciprocal tariff executive order has significantly eased global trade uncertainties,” adding, “In Korea, the willingness to invigorate the capital market is strong across political parties, enhancing policy expectations.”
Meanwhile, as of the closing time that day, the won-dollar exchange rate recorded 1375.9 won, a decrease of 0.6 won compared to the previous day.