On the 30th, the Korea Composite Stock Price Index (KOSPI) rose for the sixth consecutive transaction, once again setting a new record high. It recovered the 3250 level for the first time in over four years since August 2021. There are only 50 points left until the all-time high (3305.21). The expectation that the economy will recover in the second half of this year, along with positive news from Tesla, has been interpreted as a factor in boosting the market.
On this day, the KOSPI closed at 3254.47, up 20.90 points (0.74%) from the previous trading day. This is the highest closing price since August 9, 2021 (3260.42). The index started at 3233.31, up 2.74 points (0.08%) from the previous session, and increased its gains throughout the day. It rose to 3269.40 during the session, marking a new one-year high as well.
Foreign investors and institutions led the rise in the index with joint purchases. They net bought 637.5 billion won and 382.4 billion won worth of stocks, respectively. In particular, foreign investors chose 'Buy Korea' for six consecutive transactions, including net purchases since the 23rd, accumulating over 3 trillion won in net purchases during this period. In contrast, individuals net sold 1.09 trillion won on this day.
The expectation for economic recovery seems to have positively influenced investor sentiment. The International Monetary Fund (IMF) has raised its forecast for South Korea's economic growth rate to 1.8% for next year. The IMF noted, "A gradual economic recovery is expected to begin in the second half of the year and continue into next year due to accommodative policy trends and the resolution of political uncertainties."
The South Korea-U.S. trade negotiations also served as positive news for the stock market on this day. Initially, there were concerns that the market would be cautious regarding the South Korea-U.S. trade negotiations, but investors seem to have bet on 'reaching an agreement.' The buying momentum was particularly strong for major stocks in sectors such as semiconductors and automobiles, which were identified as being adversely affected by tariffs.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, said, "Following Samsung Electronics Chairman Lee Jae-yong and Hanwha Vice Chairman Kim Dong-kwan, Hyundai Motor Group Chairman Chung Eui-sun also joined the tariff negotiations with the U.S. today," adding that he noted, "Expectations among market participants about the long-term business improvement potential of supported corporations increased following negotiations with the U.S."
Samsung Electronics, which ranks first in market capitalization in the KOSPI, saw its stock price rise by nearly 3%. This upswing was fueled not only by the expectations for tariff negotiations but also by the renewed focus on the fact that it signed a supply contract for the AI6 foundry with Tesla for artificial intelligence (AI) chips. Last night, Tesla CEO Elon Musk revealed that he discussed specific cooperation strategies with Samsung.
Expectations for the Tesla AI chip supply contract spread to the overall semiconductor-related stocks and Samsung Group stocks. In particular, predictions from analysts that Samsung Electro-Mechanics could supply the AI6 semiconductor substrate led to a roughly 11% increase in its stock price. Stocks in semiconductor materials and parts, such as Daeduck Electronics and HPSP, also showed strength.
The news of Chairman Chung Eui-sun's trip to the U.S. boosted expectations for tariff negotiations and expanded entry into the American market, leading to a rise in Hyundai Motor and Kia stocks. Additionally, HD Korea Shipbuilding & Offshore Engineering rose due to expectations of strengthened Korea-U.S. cooperation in the shipbuilding sector, and Hanwha Ocean, which is part of Hanwha Group, also saw its stock price increase following the dissemination of news about Vice Chairman Kim Dong-kwan's trip to the U.S.
Meanwhile, shares of secondary battery stocks also glowed red. The announcement of a 6 trillion won lithium iron phosphate (LFP) battery supply contract by LG Energy Solution led to an increase in stock prices for the entire secondary battery sector. Notably, as this contract is speculated to involve Tesla, the stock price of POSCO FUTURE M also rose.
On the other hand, media and leisure-related stocks recorded a decline. The concern that the U.S. military cooperation demands could provoke China became a negative factor in the market. Paradise's stock fell by over 2%. Gaming stocks also showed weakness. KRAFTON's stock price dropped by nearly 4%, and Netmarble also closed in the red.
The KOSDAQ index closed slightly lower. It finished at 803.67, down 0.78 points (0.10%) from the previous day. The index started at 804.76, up 0.31 points (0.04%), but turned to decline in the latter half of the session. Despite foreign net purchases of 58 billion won, institutions and individuals net sold 19.9 billion won and 3.9 billion won, respectively.
The decline in stock prices of pharmaceutical and biotechnology stocks concentrated in the upper ranks of the KOSDAQ index led to a decrease in the index. Particularly, Novo Nordisk's downward revision of its earnings forecast for its obesity treatment injection 'Wegovy' had negative implications. The share price of Sam Chun Dang Pharm, which had risen as a theme stock related to obesity treatments, fell by about 8%.
Meanwhile, companies such as Elteogen, Peptron, HLB, PharmaResearch, LigaChem Biosciences, and ABL Bio also closed in the red. Thanks to the tailwind from LG Energy Solution for secondary batteries, the stock prices of ECOPRO BM and Ecopro rose. Rainbow Robotics surged on the enthusiasm generated by Samsung.
Meanwhile, in the Seoul foreign exchange market, the exchange rate of the won against the U.S. dollar (won-dollar exchange rate) recorded 1382.80 won, down 6.90 won from the previous trading day based on weekly closing transactions. Lee Jae-won, a researcher at Shinhan Investment Corp., noted, "The increase in expectations for interest rate cuts amid U.S. employment uncertainties seems to have affected the market interest rates and the dollar index, leading to their joint decline."