KOSPI Retreats On Profit-Taking After Strong Rally
This marks the second consecutive session of losses, driven largely by broad-based selling in battery, auto and tech sectors. Foreign investors were net sellers, offloading around 855.4 billion won worth of shares, while institutional and retail investors absorbed some of the pressure with net combined purchases of approximately 805 billion won.
Despite the pullback, the KOSPI remains up around 15% for the month, bolstered by easing geopolitical tensions and increased institutional inflows that had earlier sent the index to its highest levels in over three years.
Battery and automotive stocks led the decline, with LG Energy Solution falling nearly 3% and Hyundai Motor dropping 2.15%, as investors locked in gains. In tech, Samsung Electronics edged up 1%, but SK hynix lost 3.07%, reflecting mixed sentiment in the semiconductor space. Internet giant Naver dipped 1.3%, while SK Innovation slid 2.5% amid broader weakness in energy shares.
The recent decline is widely viewed as a natural correction after June's sharp gains.
Markets are also awaiting global signals, particularly from the US Federal Reserve, whose next policy steps could influence foreign capital flows into emerging markets like South Korea. At home, recent economic data, including a 0.6% rise in the Leading Economic Index for April, suggest a gradual improvement in macro conditions.
Outlook: With the KOSPI still comfortably above the key psychological level of 3,000, analysts believe the index may consolidate in the near term as traders assess global economic cues and domestic earnings updates. Volatility may persist ahead of key data releases and geopolitical developments, but underlying investor appetite remains firm. Related
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