The KOSPI index, which had experienced a decline every Monday for the past four weeks, finally closed higher on July 27. The index's rise was attributed to increased buying from retail and institutional investors, breaking the cycle of Monday losses.
According to the Korea Exchange, the KOSPI rose by 65.13 points (0.97%) to finish at 6755.75. This ended a four-week streak of Monday declines, which included drops of 0.20% on June 29, 0.46% on July 6, 8.95% on July 13, and 4.46% on July 20. Retail investors purchased a net 1.98 trillion won, while institutions bought a net 862.3 billion won, contributing to the index's increase. In contrast, foreign investors sold a net 2.90 trillion won.
Over the past month, the KOSPI had consistently faced downward pressure on Mondays. This trend was attributed to the reflection of overseas market movements, key economic indicators, policy changes, and geopolitical risks on the domestic market at the start of the week, leading to increased volatility. Notably, on July 13, the index plummeted by 8.95%, marking a so-called 'Black Monday,' and on July 20, it fell by over 4%, significantly dampening investor sentiment.
However, the gains on this day did not meet expectations given the positive news over the weekend. Semiconductor stocks, despite favorable developments related to artificial intelligence (AI) investments, did not show enough momentum to lead the index higher. Samsung Electronics closed up 1.80% at 254,000 won, while SK Hynix rose 3.24% to 1,816,000 won. Market analysts noted that the listing of Chinese memory chip maker Changxin Memory Technologies (CXMT) contributed to supply and demand fluctuations.
Lee Kyung-min, a researcher at Daishin Securities, stated, "During the AI summit in San Francisco over the weekend, major investments by domestic companies and collaborations with global tech giants were announced. While robust AI investments and collaborations exert upward pressure on related sectors, the impact of CXMT's listing has limited the upward momentum of domestic AI and semiconductor stocks."
Looking ahead, this week is significant as major earnings reports are expected from U.S. tech giants like Meta, Microsoft, and Amazon, as well as from domestic leaders such as Samsung Electronics and SK Hynix. With the Federal Open Market Committee (FOMC) results also due, the potential for increased market volatility is high.
Han Ji-young, a researcher at Kiwoom Securities, noted, "The domestic market is awaiting earnings from key sectors, including Samsung Electronics, SK Hynix, Samsung Electro-Mechanics, and Hanwha Aerospace. As we move into the middle of the week, the simultaneous processing of these events will likely lead to increased volatility. However, considering that the market has entered a phase where the potential for upward movement outweighs downside risks in terms of pricing and valuation, it is advisable to maintain existing positions in leading stocks or to consider gradual buying during corrections."
* This article has been translated by AI.
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