[MarketING] KOSPI Recovers to 2600 Level with Revived Leading Stocks

KOSPI Rises Two Consecutive Days... Recovers 2600 Level
Semiconductors and Secondary Batteries Drive Index Upward

The KOSPI rose for the second consecutive day, reclaiming the 2600 level. The KOSDAQ also climbed over 2%, approaching the 890 mark. Institutional buying led the index gains. Thanks to Tesla's strong earnings, secondary battery stocks surged significantly, raising expectations for a rally in the second half of the year.

KOSPI Recovers 2600 Level on Institutional Buying

On the 3rd, the KOSPI closed at 2602.47, up 38.19 points (1.49%) from the previous day. The KOSDAQ ended the session at 889.29, rising 21.05 points (2.42%).

[Image source=Yonhap News]

Institutional buying drove the KOSPI's recovery above 2600. On that day, institutions net purchased 768.8 billion KRW in the KOSPI market. They also bought 109.1 billion KRW in the KOSDAQ market. Foreign investors supported the KOSDAQ's over 2% rise by net buying 472 billion KRW, while they net sold 23.8 billion KRW in the KOSPI market. Individual investors sold 747.8 billion KRW and 549.9 billion KRW respectively.

Kim Seok-hwan, a researcher at Mirae Asset Securities, analyzed, "Both the KOSPI and KOSDAQ showed strong performance, especially the KOSDAQ where the secondary battery sector led gains of over 2%. The news of South Korea's trade balance turning positive for the first time in 16 months and the People's Bank of China's measures to defend the yuan's weakness led to a stronger won, which expanded foreign buying." On that day, the USD/KRW exchange rate in the Seoul foreign exchange market closed at 1308.0 won, down 9.7 won from the previous trading day.

Positive economic indicators acted as a catalyst for the stock market rally. Choi Yoo-jun, a researcher at Shinhan Investment Corp., explained, "The slowdown in the US May Personal Consumption Expenditures (PCE) price index confirmed expectations for a soft landing. South Korea's June trade balance turned positive for the first time in 16 months, and China's June Caixin Manufacturing Purchasing Managers' Index (PMI) exceeded expectations, all of which were favorable for the stock market."

On the same day, Chinese economic media Caixin reported that the June Manufacturing PMI was 50.5. Although slightly down from the previous month (50.9), it surpassed the market expectation of 50.2.

Will Secondary Battery Stocks Rally Again in the Second Half?

The market strength that day was led by semiconductors and secondary battery stocks, which had been undergoing corrections.

Samsung Electronics rose 1.11% from the previous day, and SK Hynix increased by 2.08%. The gains in secondary battery stocks were more pronounced. Samsung SDI jumped 7.17%, and LG Energy Solution rose 3.62%. In the KOSDAQ market, EcoPro surged over 20%, breaking through 900,000 KRW. It even reached an all-time high of 919,000 KRW during the session. EcoPro BM rose 5.82%, and L&F increased by 2.67%.

Tesla's strong earnings boosted the secondary battery stocks. Tesla delivered 466,140 electric vehicles in the second quarter, an 83% increase compared to the same period last year, exceeding experts' expectations of 445,000 units. During the same period, Tesla's total production reached 479,700 units, a significant increase from 258,580 units in the same period last year.

There are forecasts that secondary batteries will continue to lead in the second half of the year. Ian Na, a researcher at Yuanta Securities, said, "The recent rebound in lithium prices and increased demand, reflecting price (P) increases and volume (Q) growth effects, will be reflected in earnings from the third quarter, leading to strong performances from secondary battery cell and cathode material companies in the second half. Considering the tight supply and demand for cells and cathode materials in the US from 2026 to 2030, long-term supply contracts and expansion momentum will continue in the second half." He added, "While the first half focused on cathode materials, the second half will see momentum not only in cathode materials but also in separators, silicon anode materials, and other materials."

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