Deputy Prime Minister Choi Sang-mok Emphasizes Commitment to Value-Up Execution
Buying Momentum Flows into Banks, Automobiles, and Holding Companies
KOSDAQ Also Rises
Last week, the KOSPI index, which had plunged due to the military conflict between Iran and Israel, recovered to the 2620 level, regaining most of its losses. The market was supported by buying interest in value-up related beneficiary stocks following Deputy Prime Minister Choi Sang-mok's remarks on value-up.
On the 18th, the KOSPI index is displayed at the Korea Exchange in Yeouido, Seoul, having started higher and soaring past the 26,100 mark. On the same day, the won/dollar exchange rate opened at 1,380.55 won, down 6.25 won from the previous day. Photo by Jo Yongjun jun21@
On the 22nd, the KOSPI index closed at 2629.44, up 37.58 points (1.45%) from the previous trading day. In the securities market, institutions bought 788.6 billion KRW to defend the index. Meanwhile, foreigners and individuals were net sellers with 781.1 billion KRW and 34.3 billion KRW, respectively.
Most of the top KOSPI stocks by market capitalization, excluding Samsung Electronics and SK Hynix, rose. LG Energy Solution, Samsung Biologics, Celltrion, POSCO Holdings, and Samsung SDI closed up between 2% and 5%.
On the other hand, Samsung Electronics (-1.93%) and SK Hynix (-0.98%) declined. This is attributed to the deterioration in semiconductor stock sentiment after Nvidia plunged 10% in the New York stock market on the 19th (local time).
Buying interest in value-up related beneficiary stocks, which had stalled, revived. Deputy Prime Minister for Economy Choi Sang-mok emphasized the commitment to implementing the value-up program, leading to buying interest in sectors such as automobiles, banks, insurance, and holding companies, which were mentioned as value-up beneficiaries.
Earlier, on the 18th, Deputy Prime Minister Choi told reporters at the World Bank in Washington D.C., "We will continue to promote value-up and plan to provide corporate tax benefits to companies increasing shareholder returns such as dividends and share buybacks."
Ji-won Kim, a researcher at KB Securities, analyzed, "Expectations for value-up supported the stock market," adding, "Last week, Deputy Prime Minister Choi Sang-mok mentioned the promotion of separate taxation on dividend income, which concretized tax support measures for shareholder return companies."
In particular, the market rise was driven by institutional buying centered on bank stocks ahead of this week's earnings announcements. On the day, KB Financial Group (9.11%), Samsung Life Insurance (8.93%), Hana Financial Group (8.78%), Samsung Fire & Marine Insurance (8.29%), Korea Financial Group (8.21%), and Shinhan Financial Group (6.11%) rose. Hyundai Motor and Kia also showed gains in the 4% range.
The KOSDAQ index also closed at 845.82, up 3.91 points (0.46%) from the previous trading day. In the KOSDAQ market, individuals bought 117 billion KRW, while foreigners and institutions sold 74.8 billion KRW and 30.7 billion KRW, respectively.
The top KOSDAQ stocks by market capitalization showed mixed trends. Ecopro BM rose more than 5%, and Celltrion Pharm also increased by over 2%. HLB rose more than 6%.
Conversely, semiconductor stocks such as Rino Industrial (-8.78%), HPSP (-0.46%), and EO Technics (-3.57%), as well as Alteogen (-1.25%) and Enchem (-8.18%), declined.
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