The KOSDAQ index rose more than 3%, marking the second-highest gain this year, and recovered to the 750 level. This was influenced by the Democratic Party of Korea's decision to abolish the financial investment income tax (금투세) that was scheduled to be introduced next year.
Lee Jae-myung, leader of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 4th. Photo by Kim Hyun-min
On the 4th, the KOSDAQ closed at 754.08, up 25.03 points (3.43%) from the previous trading day. This is the second-highest gain this year, with the highest being a 6.02% increase recorded on August 6.
Lee Jae-myung, leader of the Democratic Party, stated at the party's supreme council meeting held at the National Assembly that day, "We have agreed to abolish the financial investment income tax pushed by the government and ruling party." He added, "According to principles and values, it would be right to enforce the tax even if it causes pain, but the current stock market is too difficult," explaining the decision.
The securities industry viewed this decision as likely to have a positive effect on KOSDAQ's supply and demand. Kim Young-hwan, a researcher at NH Investment & Securities, said, "Due to concerns about supply and demand outflows caused by the year-end implementation of the financial investment income tax, individual investors have been reluctant to invest in domestic stocks from a mid- to long-term perspective." He evaluated that "there is a possibility of positive supply and demand in the KOSDAQ market."
He further advised, "With the Democratic Party's decision to agree to abolish the financial investment income tax, the risk of a sharp outflow of individual investors from the KOSDAQ market has decreased, so it is necessary to keep in mind the possibility that the KOSDAQ market's performance may improve compared to the KOSPI in the future."
By investor type, foreigners and institutions net bought 330 billion KRW and 207 billion KRW respectively. Conversely, individuals net sold 540.9 billion KRW.
By sector, the entertainment and culture sector rose 6.31%, and other services also jumped 5.31%. Additionally, pharmaceuticals increased by 4.71%, chemicals by 3.56%, and most sectors showed gains.
Among the top market capitalization stocks, Alteogen closed at 389,500 KRW, up 33,000 KRW (9.26%) from the previous trading day. Silicon투 and Ligachem Bio rose 10.61% and 8.96%, respectively. Along with these, EcoPro BM, EcoPro, and Hugel all rose more than 7%, with all top market cap stocks showing gains.
On the day, 1,233 stocks in the KOSDAQ market rose, including six stocks hitting the upper price limit such as Nature Cell, Cham Joeun Yeohaeng, and Norang Pungseon. Meanwhile, 356 stocks declined without hitting the lower price limit, and 96 stocks remained unchanged.
The KOSPI index closed at 2,588.97, up 46.61 points (1.83%) from the previous trading day.
By investor type, foreigners and institutions net bought 29.5 billion KRW and 341.7 billion KRW respectively. Conversely, individuals net sold 383.7 billion KRW.
By sector, steel and metals and food and beverages rose more than 3%. Pharmaceuticals, transportation and warehousing, electronics, manufacturing, and services all increased by more than 2%. Additionally, textiles and apparel, distribution, and chemicals rose more than 1%. In contrast, telecommunications fell 0.24%.
Among the top market capitalization stocks, Samsung Electronics closed at 58,700 KRW, up 400 KRW (0.69%) from the previous trading day. SK Hynix rose 6.48%, and LG Energy Solution, Celltrion, Kia, and NAVER all rose more than 3%. Conversely, KB Financial fell 1.20%.
In the KOSPI market, 622 stocks rose without hitting the upper price limit, 256 stocks declined without hitting the lower price limit, and 62 stocks remained unchanged.
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