Insurance, Finance, Automobiles, and Cosmetics Rise
Internet, Healthcare, Gaming, and Secondary Batteries Weaken
The KOSPI index surpassed the 3,200 mark at the close for the first time in three years and ten months, driven by foreign buying.
On July 14, the KOSPI closed at 3,202.03, up 26.26 points (0.83%) from the previous day. The index opened at 3,175.59, down 0.18 points (0.01%), but quickly turned upward. Foreign investors led the rally by making net purchases worth 349.1 billion KRW. Individual investors and institutional investors recorded net sales of 334.9 billion KRW and 94.8 billion KRW, respectively.
The KOSPI index is displayed on the monitor in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Jo Yongjun
Among the top market cap stocks, Samsung Life Insurance (6.91%), Samsung C&T (6.62%), Hyundai Motor (4.33%), Shinhan Financial Group (3.61%), Hyundai Mobis (2.61%), Hana Financial Group (2.58%), Kia (2.18%), SK Hynix (1.87%), and KB Financial Group (1.02%) all rose. In contrast, LG Energy Solution (-2.02%), NAVER (-1.58%), Samsung Biologics (-1.42%), Celltrion (-0.90%), and Doosan Enerbility (-0.50%) declined.
By sector, insurance (6.75%), retail (3.82%), transportation and storage (2.70%), finance (2.41%), non-metallic minerals (1.68%), securities (1.66%), food, beverage and tobacco (1.40%), and transportation equipment and parts (1.37%) all advanced. On the other hand, IT services (-1.96%), pharmaceuticals (-1.07%), machinery and equipment (-0.98%), electricity and gas (-0.73%), real estate (-0.56%), and construction (-0.55%) declined.
Kim Jiwon, a researcher at KB Securities, said, "Despite escalating tariff pressures from U.S. President Donald Trump, the KOSPI closed higher as related concerns had already been priced in. By sector, finance, automobiles, and cosmetics rose, while internet, healthcare, gaming, and secondary batteries declined."
The KOSDAQ index closed at 799.37, down 1.10 points (0.14%) from the previous day. The index started at 802.73, up 2.26 points (0.28%), but turned downward in the morning and continued to weaken. Foreign investors and institutions recorded net sales of 151.3 billion KRW and 41.2 billion KRW, respectively, while individuals bought a net 201.2 billion KRW.
Among the top market cap stocks, Genexine (3.05%), LIG Nex1 (1.99%), Alteogen (1.37%), Ecopro (1.27%), HLB (1.17%), PharmaResearch (0.89%), and Kolon TissueGene (0.84%) rose. In contrast, ABL Bio (-5.09%), LIG ChemBio (-1.46%), SM Entertainment (-1.32%), Pearl Abyss (-0.98%), Rainbow Robotics (-0.74%), and Classys (-0.70%) fell.
Overall, the domestic stock market was marked by strong performances in insurance and financial sectors. Expectations for the passage of additional amendments to the Commercial Act, such as mandatory treasury stock cancellation and increased dividends, boosted investor sentiment.
Foreign buying continued to flow into the automobile sector, which had previously underperformed due to tariff effects. The positive impact was also attributed to Yeo Hankoo, head of trade negotiations, expressing a willingness to lower tariffs on items such as automobiles and steel.
Consumer sectors, including cosmetics and retail, also showed gains. The possibility of Chinese President Xi Jinping visiting Korea for the Asia-Pacific Economic Cooperation (APEC) meeting had a positive effect. Strong online sales during Amazon Prime Day and expectations of improved consumer sentiment due to the distribution of livelihood recovery support funds also contributed.
Kim added, "With major economic indicators such as the U.S. Consumer Price Index scheduled for this week, the domestic market is expected to continue its rally based on policy momentum and liquidity. It will be important to see whether second-quarter earnings can serve as a future growth driver as valuations normalize."
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