KOSPI Holds Steady After Historic Surge Above 4000 Points

South Korea's benchmark KOSPI index marked a significant milestone by surpassing the 4000-point level for the first time, but saw slight profit-taking in the subsequent session. Despite the minor pullback, the index maintained its position above this crucial psychological barrier, solidifying its upward momentum and reflecting investor confidence in the market’s resilience.

On October 28, the KOSPI closed at 4010.41, down 32.42 points or 0.80% from the previous session’s record high of 4042.83. The day’s trading began with early losses, opening at 4010.47, in line with broader market sentiment following consecutive days of historic gains.

The dip was mainly driven by profit-taking activities among foreign and institutional investors, which analysts view as natural after a strong rally. “Profit-taking was triggered ahead of key events, including the summit talks and SK Hynix’s earnings announcement. However, declines remain limited despite weakness in semiconductor stocks,” commented Lee Jae-won, an analyst at Shinhan Investment Corp.

Foreign and Institutional Investors Take Profits, Individuals Steady

Trading revealed an apparent divergence in investor behavior. Individual investors, buoyed by optimism, were the sole net buyers, purchasing KRW 1.5733 trillion worth of stocks. Conversely, foreign investors and institutions pressured the market, unloading KRW 1.6139 trillion and KRW 925 billion, respectively. This selling activity weighed heavily on the index’s short-term trajectory but left long-term strength intact.

Anticipation Builds Ahead of Key Summits and Earnings

The focus shifts to major geopolitical events and earnings reports expected to influence market sentiment. Upcoming summit meetings between South Korea, the U.S., and China have captured investor attention, along with corporate results from market leaders like SK Hynix.

While blue-chip performance varied, notable gains were seen in LG Energy Solution (+3.03%), Samsung Biologics (+1.99%), and Doosan Enerbility (+5.49%). On the downside, market heavyweight Samsung Electronics declined 2.45%, dipping below KRW 100,000, and SK Hynix fell 2.62%, closing beneath KRW 530,000. “Geopolitical and corporate developments will likely serve as catalysts in the coming days,” Lee noted.

KOSDAQ Inches Higher, Holds Gains Above 900 Points

The tech-heavy KOSDAQ index demonstrated resilience against broader market weakness, edging up 0.07% or 0.60 points to close at 903.30. The index opened at 902.82, sustaining its momentum after breaking the 900-point mark in the prior session. Rotational buying provided stability, as investors targeted undervalued sectors such as telecommunications equipment, which saw renewed interest amid expectations for improved earnings performance.

According to Lee, “The index remained steady despite profit-taking pressures and continues to signal optimism following its milestone close above the 900 level.”

By investor category, both individuals and institutions provided support for the KOSDAQ, net purchasing KRW 1.993 trillion and KRW 124 billion, respectively. However, foreign investors acted as net sellers again, offloading KRW 1.742 trillion without substantially affecting the index’s direction.

Notable Stock Movements on KOSDAQ

Divergence was evident among KOSDAQ’s leading stocks. EcoProBM rose by 0.69%, followed by EcoPro (+3.62%) and HLB (+3.14%), signaling strength in green energy and biotech sectors. On the other hand, Altenogen dipped 1.55%, while Peptron dropped 4.76%, indicating mixed fortunes for other stocks in the index’s upper tier.

Korean Won Slides Amid Trade Talks Uncertainty

The Korean won weakened against the U.S. dollar during the session, with the USD/KRW exchange rate climbing to 1437.7, up KRW 6.0 from the previous close at 1431.7. Sentiment around currency markets remained cautious as investors awaited clarity on U.S.-China trade negotiations and progress in U.S.-South Korea discussions.

Lee noted, “Optimism around U.S.-China trade talks persists, but uncertainties stemming from potential delays in U.S.-South Korea talks are exerting downward pressure on the won.”

Outlook: Volatility Looms Amid Key Developments

As South Korea’s equity markets remain buoyant above significant technical levels, upcoming geopolitical and corporate catalysts will likely dictate the next phase of movement. Although volatility is expected in the near term, the core trends point to market resilience bolstered by recent breakthroughs in both KOSPI and KOSDAQ indices. Investors will closely monitor political summits and Q3 earnings reports to gauge future opportunities, ensuring markets remain dynamic and responsive to evolving conditions.