On the 15th, the Korea Composite Stock Price Index (KOSPI) closed higher for the second consecutive trading day, continuing its 'summer rally.' It experienced profit-taking pressure after surpassing the 3200 mark a week after breaking through 3100 on the 8th, but gains in the semiconductor sector led by Samsung Electronics pushed the index higher. Nuclear and defense stocks also showed strength.
That day, the KOSPI index closed at 3215.28, up 13.25 points (0.41%) from the previous trading day, marking the highest closing price since 3220.62 on Aug. 11, 2021. The index started lower at 3083.82, down 5.83 points (0.19%) from the previous session, but reversed to gain in the afternoon. The intraday high was recorded at 3216.01.
Despite profit-taking by institutions, foreign investors led the index's rise through net buying. Foreign investors began with a net selling of 20.3 billion won in the early session but switched to net buying of 286.8 billion won in mid-session. In contrast, individuals, who started as net buyers, turned to net selling, offloading 334.7 billion won.
Expectations are rising for a breakthrough of the KOSPI's all-time high of 3316.08 (intraday basis, June 25, 2021). In a report released on the 11th, global investment bank JP Morgan noted that 'the KOSPI could reach the 5000 level within the next two years.'
Lee Kyung-min, a researcher at DAISHIN SECURITIES, said, 'The KOSPI closed higher despite profit-taking pressure due to the recovery above the 3200 level and rising caution ahead of the U.S. consumer price index (CPI) announcement.' He added, 'Buying interest from foreigners flowed into the electrical and electronics sector, while the defense power equipment sector provided support against downward pressure.'
In fact, the rise in the index that day was significantly influenced by the stock price of Samsung Electronics, the largest market cap company in the KOSPI. Samsung Electronics closed at 63,700 won, up 1.84% from the previous trading day. It started lower at 62,300 won, down 0.32%, but surged to 63,800 won due to high buying interest.
The U.S. government's approval of NVIDIA's AI semiconductor chip 'H20' for sale in China was a positive factor. H20 is reportedly expected to be mainly equipped with Samsung Electronics' high bandwidth memory (HBM), HBM3. Additionally, the stock prices of FST and SIMMTECH, among others in the semiconductor sector, also rose that day.
Stocks related to nuclear power and electrical equipment also showed strength. Following news of a planned investment of $70 billion in AI and energy sectors by the U.S. Trump administration, stocks of Doosan Enerbility, LS ELECTRIC, HD Hyundai Electric, and ILJIN Electric all closed higher.
Defense stocks also rose, driven by expectations of improved overall performance. With sustained demand for ammunition, Poongsan's stock price skyrocketed by over 17% in just one day. Stocks of Hanwha Aerospace, LIG Nex1, and Korea Aerospace Industries also closed higher.
In contrast, SK hynix closed lower due to concerns over oversupply of HBM from Micron. Additionally, stocks related to automobiles, securities, and holding companies also finished lower. Notably, after the passing of an amendment to the Commercial Code on July 3, profit-taking activity saw Samsung Fire & Marine's stock price drop by over 6% after it was approved in the presidential office's cabinet meeting.
Lee Jae-won, a researcher at Shinhan Investment Corporation, remarked, 'It seems a rotation market is continuing with performance stocks, policy stocks (commercial code), and out-of-favor stocks.' He added, 'With major corporations set to announce their second-quarter earnings around the end of this month, stock prices may change direction depending on the earnings news as momentum.'
The KOSDAQ index also closed higher, finishing at 812.88, up 13.51 points (1.69%) from the previous day. In the KOSDAQ market, foreign investors also stepped in as net buyers, contributing to the index's rise with net purchases amounting to 119.4 billion won. In contrast, individuals and institutions both recorded net selling of 113.8 billion won and 15.6 billion won, respectively.
By sector, bio stocks surged, leading to an increase in stock prices of most high-market-cap stocks in the KOSDAQ market. Following news of Alphabet's investment in Metsera, expectations for oral obesity treatment drugs rebounded, causing Peptron's stock price to rise by over 22%, while D&D Pharmatech's stock price saw an increase of more than 15%.
Among the top 10 market-cap stocks, 8 saw price increases, excluding secondary battery stocks EcoPro and ECOPRO BM. Notably, Alteogen's stock price rose by over 5% on expectations of a U.S. patent registration for its subcutaneous injection 'ALT-B4.'
Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,380.20 won, down 2.90 won (0.20%) from the previous trading day, ahead of the U.S. consumer price index (CPI) announcement for June. If inflation rates come out high, expectations for interest rate cuts may diminish, potentially leading to a stronger dollar.