KOSPI Settles in 2,640 Range on Tariff Relief... Foreign and Institutional Investors Lead Rally

KOSDAQ Also Rises by 1%

On May 26, the domestic stock market rose across the board, buoyed by strong buying from both foreign investors and institutions. The news that the Donald Trump administration had postponed the imposition of tariffs on the European Union (EU) acted as a positive catalyst.

On this day, the KOSPI closed at 2,644.40, up 52.31 points (2.02%) from the previous trading session. The index had opened at 2,598.45, up 6.36 points (0.25%) from the prior close. While individual investors sold a net 500.8 billion won, foreign investors and institutions bought a net 102.1 billion won and 416.9 billion won, respectively, driving the index higher.

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Large-cap stocks ended the session with gains across the board. Samsung C&T surged more than 7% on expectations from the securities industry that it would benefit from Samsung Group’s governance structure reforms. In addition, HD Hyundai Heavy Industries (6.04%), LG Energy Solution (3.73%), KB Financial Group (3.73%), Naver (2.68%), Samsung Biologics (2.66%), and Shinhan Financial Group (2.18%) also rose.

On the same day, the KOSDAQ closed at 725.27, up 9.29 points (1.30%). The index had opened at 718.48, up 2.50 points (0.35%) from the previous close. Individual investors recorded a net sale of 164.4 billion won, while foreign investors and institutions purchased a net 85.2 billion won and 86.1 billion won, respectively, supporting the index.

Among the top market cap stocks, ABL Bio (4.82%), Samchundang Pharm (3.62%), Lino Technology (3.42%), Peptron (3.18%), Alteogen (2.63%), and Ecopro BM (2.27%) gained, while Kolon TissueGene (-2.36%), HLB (-1.31%), and PharmaResearch (-0.89%) declined.

By sector, trading companies (6.30%), insurance (4.97%), shipbuilding (4.44%), and conglomerates (4.13%) showed strong performance, while toys and leisure goods (-0.59%), computers (-0.57%), and education (-0.28%) declined. On the KOSPI, 637 stocks rose, 260 fell, and 40 remained unchanged. On the KOSDAQ, 948 stocks advanced (including three that hit the daily upper limit), 117 were unchanged, and 660 declined.

Kim Ji-won, a researcher at KB Securities, summarized, "Just before the domestic market opened, President Trump announced that the implementation date for EU tariffs would be postponed from June 1 to July 9, which was interpreted as leaving room for further negotiations. As a result, tariff concerns that had heightened over the weekend were somewhat alleviated." Kim also noted that the continued strength in nuclear power, defense, and shipbuilding stocks helped drive the index higher. In addition, the ongoing stabilization of the won-dollar exchange rate was also seen as contributing to the rise in stock prices.

After the market closes on May 28 (local time), Nvidia's earnings will be announced. On May 29, the Bank of Korea will hold its May Monetary Policy Board meeting, and the minutes of the May US Federal Open Market Committee (FOMC) meeting will be released. On May 30, the US April Personal Consumption Expenditures (PCE) price index will be announced. This week, the domestic stock market is expected to reflect political issues ahead of the Monetary Policy Board meeting and the presidential election. Tonight, the US stock market will be closed for Memorial Day.

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