Stock Market's KOSPI Index May Increase Further on Monday
In the global market landscape, optimism and bargain hunting drove a positive forecast for Asian markets, with South Korea's KOSPI index being no exception. On Monday, the KOSPI ended higher, buoyed by foreign investor demand and other favourable factors.
Several key players in the South Korean market experienced varied fortunes. Kia Motors accelerated by 1.98 percent, while SK Hynix remained unchanged. Notable tech giants like Samsung Electronics and LG Electronics saw gains, with Samsung climbing 1.16 percent and LG Electronics improving by 1.74 percent. Shinhan Financial, KB Financial, and Hana Financial also posted gains, while LG Chem and Lotte Chemical saw minor losses.
The interplay of foreign buying amid fiscal policy uncertainty and recent strong market momentum likely supported these gains. Foreign investors, despite concerns about government capital gains tax policies, were net buyers, suggesting some confidence or strategic positioning. This demand could have propelled technology stocks and helped the KOSPI advance. As large-cap technology firms, Samsung Electronics and LG Electronics often attract foreign institutional investment, which can significantly influence KOSPI movements.
Elsewhere in the market, POSCO Holdings dipped 0.17 percent, SK Telecom advanced 1.26 percent, KEPCO spiked 2.90 percent, Hyundai Mobis added 0.53 percent, and Hyundai Motor gained 0.48 percent. The market saw 677 gainers and 209 decliners, with a total volume of shares traded at 291 million shares worth 9.66 trillion won.
The KOSPI finished at 3,147.75, advancing by 28.34 points or 0.91 percent. Meanwhile, the NASDAQ and the S&P 500 pulled back from their record highs due to a recent sell-off, while crude oil continued to decline on Monday thanks to oversupply concerns and fears of a tariff-induced slowdown by the global economy.
South Korea will release July data for consumer prices later this morning, which could provide further insights into the market's direction. Optimism the weak jobs data will lead the Federal Reserve to lower interest rates next month has increased, as indicated by CME Group's FedWatch Tool, which shows a 91.9 percent chance of a quarter point rate cut in September, up from 63.1 percent a week ago.
Technology stocks in South Korea, such as Samsung Electronics and LG Electronics, experienced gains, which may have been influenced by foreign institutional investment, due to the demand from foreign investors, despite their concerns about government capital gains tax policies. This demand could have propelled technology stocks and helped the KOSPI advance, given that large-cap technology firms like Samsung Electronics and LG Electronics often attract significant foreign institutional investment, impacting KOSPI movements. On the other hand, the global finance market, such as the NASDAQ and the S&P 500, pulled back from record highs due to a recent sell-off, while the industry of crude oil continued to decline due to oversupply concerns and tariff-induced slowdown fears by the global economy.
