KOSPI Closes at 4-Year High, Rebounds to Finish Above 3,230

Closed Higher for Five Consecutive Sessions
Hanwha Group-Related Stocks Show Strength

On July 29, the KOSPI index closed higher, reaching its highest level in nearly four years. Despite significant volatility due to uncertainties surrounding the Korea-US tariff negotiations and concerns over domestic tax reform proposals, the index managed to recover intraday losses thanks to buying by foreign investors and institutions.

On the 29th, when the KOSPI closed at 3,230.57, up 21.05 points (0.66%) from the previous session, dealers were working in the dealing room at the Seoul Hana Bank headquarters. Photo by Yonhap News

On this day, the KOSPI closed at 3,230.57, up 21.05 points (0.66%) from the previous session, marking its fifth consecutive day of gains. The index opened at 3,192.17, down 17.35 points (0.54%), but reversed its losses and climbed past the 3,230 mark as the session progressed. Foreign investors bought 604.7 billion KRW worth of shares, and institutions purchased 115.7 billion KRW. Meanwhile, individual investors sold 825.6 billion KRW worth of shares.

By sector, most industries saw gains, including machinery and equipment (1.78%), transportation equipment and parts (1.44%), non-metallics (1.36%), pharmaceuticals (1.33%), retail (1.30%), construction (1.24%), general services (1.23%), insurance (1.09%), securities (0.94%), and finance (0.83%). However, the transportation and warehousing sector (-0.91%) and telecommunications (-0.64%) declined.

Among large-cap stocks, Hanwha Aerospace (4.72%), Samsung C&T (3.22%), LG Energy Solution (3.02%), Doosan Enerbility (2.52%), Shinhan Financial Group (2.38%), Samsung Biologics (1.97%), HD Hyundai Heavy Industries (1.94%), and Samsung Life Insurance (1.29%) posted gains. In contrast, POSCO Holdings (-2.01%), NAVER (-1.06%), Hyundai Mobis (-1.00%), and Hanwha Ocean (-0.82%) declined.

Shares of shipbuilding companies were strong following news that Hanwha Group Vice Chairman Kim Dongkwan had departed for Washington to support cooperation in the shipbuilding industry and assist with Korea-US negotiations. Group stocks such as Hanwha Aerospace and Hanwha Ocean also rose.

The KOSDAQ index closed at 804.45, up 0.05 points (0.01%) from the previous day. KOSDAQ also opened lower at 803.38, down 1.02 points (0.13%), but rebounded to close nearly flat. Foreign investors and institutions were net sellers of 5.6 billion KRW and 29.5 billion KRW, respectively, while individual investors purchased 42.4 billion KRW worth of shares.

Among large-cap KOSDAQ stocks, Peptron (6.41%), Samchundang Pharm (4.76%), PharmaResearch (3.66%), Classys (2.46%), Silicon Two (1.86%), and SM Entertainment (1.40%) rose. On the other hand, Caregen (-11.28%), ABL Bio (-4.18%), Ecopro BM (-4.10%), Ecopro (-3.85%), EO Technics (-1.86%), HLB (-1.11%), and Leeno Industrial (-1.06%) declined.

Meanwhile, the government and the ruling Democratic Party of Korea officially announced plans to raise the top corporate tax rate from 24% to 25% and to tighten the criteria for major shareholders subject to capital gains tax from the current 5 billion KRW to 1 billion KRW.

Kim Jiwon, a researcher at KB Securities, said, "Both the KOSPI and KOSDAQ fell by more than 1% immediately after the market opened, but fully recovered their losses as the government's tax reform proposal was interpreted as reducing uncertainty. Due to concerns over the realization of the tax reform, individual investors continued net selling of KOSPI stocks for the fifth consecutive session. Foreign investors and institutions maintained net buying, with futures net purchases exceeding 1 trillion KRW, contributing to the index's rebound."