KOSPI Stabilizes at 2610 Level... Rises for 5 Consecutive Trading Days

Sectoral Rotation Flows in Finance, Petrochemicals, and Defense Industries

The Korean stock market closed higher across the board on the 17th. In the absence of a clear net buying entity, sectoral rotation continued with favorable factors emerging in finance, petrochemicals, and defense industries.

On the day, the KOSPI closed at 2,610.42, up 19.37 points (0.75%) from the previous session, marking a five-day consecutive rise. The KOSPI surpassing the 2,610 level is the first time in about three and a half months since October 30 of last year. The index opened at 2,595.99, up 4.94 points (0.19%). Individuals and foreigners sold 30.5 billion KRW and 224.1 billion KRW respectively, while institutions were net buyers with 216.3 billion KRW.

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The market strength on the day was attributed to the decline in the won-dollar exchange rate and the inflow of foreign net buying in futures. Ji-won Kim, a researcher at KB Securities, explained, "Foreign net buying in futures has continued for three trading days," adding, "The fact that pension funds have been net buyers for 31 consecutive days since the end of last year is also a supporting factor for the index."

Top market capitalization stocks showed mixed trends. EcoproMati rose 12.38%, Hanwha Aerospace 8.26%, SK Innovation 5.33%, Coway 4.52%, and LG Chem 4.40%, while Doosan (-4.04%), HD Hyundai Electric (-3.50%), Hyundai Glovis (-3.45%), HYBE (-3.23%), and Hyundai Motor (-3.01%) declined. Samsung Fire & Marine Insurance (8.42%) and Samsung Life Insurance (7.25%), which had been on an upward trend due to subsidiary incorporation news, also showed strong performance amid expectations of treasury stock cancellation.

Researcher Kim noted, "Insurance, chemical sectors, and defense stocks were strong," explaining, "Defense stocks continued to be strong due to U.S. pressure on Europe to increase defense spending, and Hanwha Aerospace rose 8.26% amid continued strong earnings forecasts." On the other hand, the automobile sector showed weakness after U.S. President Donald Trump mentioned plans to impose tariffs on imported cars starting April 2.

On the same day, the KOSDAQ opened up 2.89 points (0.38%) and extended gains to 12.16 points (1.61%), closing at 768.48. Individuals and institutions were net sellers of 19.9 billion KRW and 30.3 billion KRW respectively, while foreigners bought 60.9 billion KRW.

Among the top market capitalization stocks, GemVax rose 19.15%, Olix 14.37%, Lake Materials 13.41%, and PNT 12.14%, while Shinsung Delta Tech (-5.49%), SM Entertainment (-3.36%), MRO (-3.06%), and Wemade (-2.96%) declined.

Researcher Kim assessed, "This week, aside from the FOMC minutes, there are no major events, so sectoral rotation is occurring," adding, "The flow is expected to be linked to Trump's tariff policies and comments from Federal Reserve officials regarding monetary policy." The U.S. stock market was closed on the 17th (local time) for Presidents' Day.