KOSPI and KOSDAQ Close Higher Together on Rate Cut Hopes and Earnings Momentum

KOSPI Closes Near 3,200 Mark
KOSDAQ Also Rises Nearly 2%

On August 5, both the KOSPI and KOSDAQ markets closed higher, supported by eased concerns over tax reform proposals and expectations of interest rate cuts.

On the 5th, the KOSPI, along with the won/dollar exchange rate, was displayed on the monitors in the dealing room of Hana Bank in Jung-gu, Seoul. As of 10:10 a.m. that day, the KOSPI stood at 3,203.38, up 55.63 points (1.77%) from the previous session, recovering to the 3,200 level during the trading session. Photo by Cho Yongjun

On this day, the KOSPI ended trading at 3,198.00, up 1.60% from the previous session. The index opened at 3,187.15, a 1.25% increase from the previous day, and briefly climbed into the 3,200 range early in the session. Although it pulled back slightly afterward, the upward momentum was maintained throughout the day.

Foreign investors and institutions bought 291.9 billion KRW and 94.5 billion KRW respectively, pushing the index higher. In contrast, individual investors sold 471.8 billion KRW.

Most sectors closed higher. Insurance (2.71%), electricity·gas (2.41%), finance (2.37%), chemicals (1.98%), securities (1.96%), construction (1.92%), machinery·equipment (1.73%), electrical·electronics (1.72%), metals (1.57%), manufacturing (1.52%), pharmaceuticals (1.17%), transportation equipment·parts (1.15%), and medical·precision instruments (1.11%) all posted gains in that order. Only the textile·apparel sector declined, falling 0.59%.

Among the top 10 stocks by market capitalization, all rose except for Hyundai Motor (-0.24%). Samsung Electronics (0.29%), SK Hynix (2.13%), LG Energy Solution (2.93%), Samsung Biologics (0.29%), Hanwha Aerospace (2.45%), KB Financial Group (3.69%), Doosan Enerbility (0.78%), and HD Hyundai Heavy Industries (0.11%) all saw gains. Additionally, Celltrion rose 2.24%, while Kia fell 1.36%.

On the same day, the KOSDAQ closed at 798.60, up 1.85% from the previous session. The index started at 791.94, a 1.01% increase from the previous day, and, like the KOSPI, maintained an upward trend throughout the session.

Foreign investors and institutions made net purchases of 45.7 billion KRW and 25.6 billion KRW respectively, while individual investors alone sold 63.2 billion KRW.

By sector, finance (4.27%), electrical·electronics (3.62%), machinery·equipment (2.05%), manufacturing·distribution (1.98%), paper·wood (1.92%), chemicals (1.90%), construction (1.87%), transportation equipment·parts (1.67%), and metals (1.54%) all rose in that order. Telecommunications (-0.40%) and transportation·storage (-0.35%) closed lower.

Among the top stocks by market capitalization, HLB (-0.63%) and Samchundang Pharm (-1.13%) declined, while secondary battery stocks such as Ecopro BM (15.28%) and Ecopro (8.54%) surged. Alteogen (2.78%), Peptron (0.34%), PharmaResearch (1.62%), Rainbow Robotics (3.82%), Ligachem Bio (2.14%), and ABL Bio (5.02%) also finished higher.

This week, the market is expected to move in line with earnings as major domestic companies are set to announce their results. Earnings reports from Kakao, Naver (NAVER), LG Chem, and SK Telecom are scheduled.

Kim Jiwon, a researcher at KB Securities, analyzed, "Given the recent sharp rally, there is a burden of high valuations, so further gains at current index levels will likely require confirmation of earnings momentum."