[MarketING] As Secondary Batteries Revive, KOSDAQ Surges... Approaching 900 Points

KOSDAQ Rises for 3 Consecutive Days, Approaching 900 Level
Secondary Battery Stocks Surge, KOSDAQ Up Over 1%

The Kosdaq is gaining upward momentum as secondary battery stocks, which had been undergoing adjustments, are reviving. It has risen for three consecutive days and is on the verge of reclaiming the 900-point level. While secondary battery stocks are leading the Kosdaq, the KOSPI is being driven by semiconductors. Samsung Electronics and SK Hynix surged significantly amid positive sentiment from the U.S.

Kosdaq Rises for Three Consecutive Days, Nearing 900-Point Recovery

On the 13th, the KOSPI closed at 2,637.95, up 8.6 points (0.33%) from the previous day. The Kosdaq ended the session at 896.81, rising 11.05 points (1.25%).

[Image source=Yonhap News]

Foreign and institutional buying led the index gains. On that day, foreigners net purchased 115.1 billion KRW in the KOSPI market and 205 billion KRW in the Kosdaq market. Institutions also bought 155.2 billion KRW and 100.2 billion KRW respectively. Only individual investors sold, net selling 248.5 billion KRW and 293.3 billion KRW in the two markets respectively.

The semiconductor sector lifted the KOSPI, while secondary battery stocks boosted the Kosdaq. Samsung Electronics closed at 72,000 KRW, up 1.41% from the previous day. SK Hynix rose 4.09% to reach the 119,000 KRW level. During the session, it climbed to 120,100 KRW, setting a 52-week high. In the Kosdaq market, EcoPro BM and EcoPro rose 5.4% and 8.24% respectively. EcoPro, which was in the 560,000 KRW range earlier this month, continued its upward trend and is now close to reclaiming the 750,000 KRW level.

Kim Seok-hwan, a researcher at Mirae Asset Securities, analyzed, "The domestic stock market showed strength due to expectations of the U.S. Federal Reserve's (Fed) interest rate hold and positive factors for individual sectors. The semiconductor sector showed strength following news of the U.S. government's extension of the export control waiver for advanced equipment, and secondary batteries rose due to EcoPro's inclusion in the FTSE (Financial Times Stock Exchange) Environmental Technology (ET) index."

FTSE International recently announced the regular changes to the FTSE ET index and included EcoPro in the FTSE ET100 and FTSE ET50 indices. The FTSE ET index targets global companies generating more than 50% of their revenue from environmentally friendly technology.

The U.S. government, which has effectively banned exports of advanced semiconductor equipment to China, decided to extend the regulatory waiver for Korean and Taiwanese companies with production plants in China, which was set to expire in October. When the U.S. implemented export controls on semiconductors and production equipment to China in October last year, it granted a one-year waiver to companies like Samsung Electronics, SK Hynix, and Taiwan's TSMC that had already invested in China. This waiver was due to expire in October.

Secondary Battery Stocks Revive Again on Tesla-Driven Tailwind

Secondary battery stocks, which surged earlier this year and emerged as leaders in the domestic stock market but had been undergoing adjustments for the past two months, are gradually recovering, giving the Kosdaq upward momentum.

This strength in secondary battery stocks is due to Tesla. On the 12th (local time), Tesla closed at $249.83, up 2.22% from the previous day, continuing its 12-day consecutive price increase streak in the U.S. stock market. This is the longest consecutive rise since Tesla was listed on Nasdaq in June 2010. The previous record was 11 consecutive days set in January last year. Tesla's stock price rose 36.7% over these 12 trading days.

Tax incentives for Tesla's 'Model 3' and news that Ford and General Motors (GM) will use Tesla's charging network have recently acted as drivers for Tesla's stock price increase.

Ian Na, a researcher at Yuanta Securities, said, "Secondary battery stocks will inevitably remain leading stocks in the second half of the year. Strong earnings are expected from secondary battery cell and cathode material companies in the second half, and from 2026 to 2030, supply and demand for cells and cathode materials in the U.S. will remain tight, so long-term order contracts and expansion momentum are expected to continue in the second half."

There are forecasts that secondary batteries and semiconductors will continue to lead stock market gains in the second half. Kang Hyun-ki, a researcher at DB Financial Investment, said, "The first reason for the stock market rise in the second half is the widening gap between long- and short-term interest rates, which will create a financial market environment. In such a situation, momentum-related stocks sensitive to liquidity tend to perform well. These stocks are chosen not based on valuation or corporate performance but on popularity votes by participants who think they are the best at the time. Globally, the AI industry led by Nvidia falls into this category, and in Korea, the secondary battery industry does," he analyzed.

Kang cited a second reason: as inflation rates decline, purchasing power per currency improves, leading to a performance-driven market. At this time, attention is paid to improving fundamentals, and value-related stocks led by semiconductors rebound. Kang added, "All these phenomena can occur in a weak dollar environment. It is advisable to focus on momentum-related stocks led by secondary batteries and value-related stocks led by semiconductors among large-cap stocks benefiting from foreign capital inflows into the domestic stock market. With these as leading stocks, the stock market is expected to continue rising in the second half."

This content was produced with the assistance of AI translation services.