KOSPI Closes Higher... Naver Regains 3rd Place in Market Cap

Samsung Electronics Fails to Surpass 80,000 Won
Kakao Loses 3rd Place in Market Cap
KOSDAQ Outperforms KOSPI with Stronger Gains

On the 13th, dealers are working in the Hana Bank dealing room in Euljiro, Seoul, where the KOSPI index showed an early morning upward trend. The index started at 3,253.24, up 6.77 points (0.21%). Photo by Moon Honam munonam@

[Asia Economy Reporter Junho Hwang] On the 13th, the stock market closed higher as foreign and institutional investors engaged in net buying amid a flood of profit-taking sales by individual investors. In the KOSPI, Kakao, which ranked third in market capitalization, lost its third place to NAVER. Samsung Electronics' stock price surpassed 80,000 KRW during the day but failed to maintain that level until the market closed.

On this day, the KOSPI closed at 3,271.38, up 24.91 points (0.77%) from the previous day. While individual investors, who had been driving the market's rise, realized profits worth 563.9 billion KRW, foreign and institutional investors made net purchases of 259.6 billion KRW and 307.2 billion KRW, respectively. Among all listed stocks, 642 stocks ended the day higher, 207 stocks declined, and 63 stocks remained unchanged.

Samsung Electronics Fails to Break 80,000 KRW Barrier

The unchanging market leader, Samsung Electronics, saw net buying by institutions and briefly surpassed 80,000 KRW during the day. However, it failed to hold that level until the close, finishing at 79,800 KRW. SK Hynix, ranked second in market capitalization, closed at 123,000 KRW, up 2.50%.

Meanwhile, Kakao lost its third place in market capitalization to NAVER. NAVER rose 5.38% to 441,000 KRW, while Kakao closed down 0.62% at 161,000 KRW.

SK Securities' Research Asset Strategy Team attributed NAVER's new 52-week high to strong second-quarter earnings expectations following Goldman Sachs' positive outlook. Goldman Sachs forecasted that NAVER's second-quarter sales would increase by about 20% year-on-year and that operating profit would remain stable.

As the presidential election approaches, political-themed stocks also performed well. Casual clothing brand company Hanse MK rose 23.38% to 124,000 KRW. The stock surged following news that CEO Kim Dong-nyeong is an alumnus of Kyunggi High School and Seoul National University, like Choi Jae-hyung, the head of the Board of Audit and Inspection, who is expected to be a presidential candidate.

Additionally, following news that Interpark was up for sale, its subsidiary iMarketKorea closed up 8.17% at 11,250 KRW. Consequently, the entire retail sector rose 1.59%. By sector rankings, the service industry rose 1.64% led by NAVER's gains, and the textile and apparel sector also increased by 1.63%.

Celltrion Healthcare and Others Rise

The KOSDAQ's upward momentum was stronger than the KOSPI's, closing at 1,043.31, up 8.67 points (0.84%). On KOSDAQ, individual investors made net purchases worth 120.6 billion KRW, while foreign and institutional investors sold 165.6 billion KRW and 7.9 billion KRW, respectively. Among all stocks, 941 rose, 397 fell, and 76 remained unchanged.

It was a day highlighted by the performance of top market capitalization stocks. Celltrion Healthcare rose 0.27% to 112,100 KRW per share, and Kakao Games increased 3.88% to 83,100 KRW. Conversely, Celltrion Pharm declined 1.59%, and Pearl Abyss also fell 1.38%.

By sector, IT parts and paper and wood industries rose 3.80% and 3.51%, respectively. Entertainment (2.56%), chemicals (1.92%), digital (1.74%), and construction (1.54%) also showed notable gains.

Lee Kyung-min, a researcher at Daishin Securities, analyzed, "The previous day's strong U.S. stock market and the decline in the won-dollar exchange rate eased foreign investor supply concerns. Expectations for second-quarter earnings this year were entering the market, and China's June import-export data showed better-than-expected performance, positively influencing investor sentiment."

He added, "The KOSPI 3,200 level is attractive with a price-earnings ratio of about 11 times even looking 12 months ahead. Although there may be short-term fluctuations and period adjustments following the sharp rebound, concerns about a directional reversal of the KOSPI will be limited. Rather, increased volatility will present an opportunity to increase holdings."