KOSPI Closes Just Above 8,000 as Samsung Electronics Rises 2% Ahead of Earnings Release [Market Close]

[Financial News] The KOSPI (Korea Composite Stock Price Index) managed to hold above the 8,000 level, supported by net buying from individual investors. Samsung Electronics, which is set to release earnings on the 7th, rose more than 2%.
According to the Korea Exchange on the 6th, the KOSPI closed at 8,051.33, down 37.01 points, or 0.46%, from the previous session. The index opened 1.22% higher at 8,186.82 and climbed to as high as 8,327.26 in the morning. In afternoon trading, losses widened and it briefly fell to the 7,800 level, down as much as 3.37% intraday, but it recovered by the close.
In the main board market, individuals bought 2.6668 trillion won worth of shares, while foreigners sold 1.3088 trillion won and institutions sold 1.4539 trillion won.
By sector, securities rose 3.61%, insurance gained 2.73%, and transportation equipment and parts advanced 2.32%. Medical and precision instruments fell 5.1%, pharmaceuticals dropped 2.34%, and financials declined 0.93%.
Among the market-cap leaders, Samsung Electronics rose 2.75%, Samsung Electronics preferred shares gained 2.16%, and Hyundai Motor advanced 2.03%. SK hynix fell 3.38%, SK Square dropped 5.92%, and Samsung Electro-Mechanics declined 8.09%.
As Samsung Electronics closed stronger ahead of its preliminary second-quarter earnings release on the 7th, domestic stocks showed high volatility, at one point moving around the 7,800 level during the session.
Brokerages expect the market to view this week's second-quarter earnings announcements from semiconductor companies as a short-term relief from uncertainty. The KOSPI fell 11.3% from the end of last month through the 3rd, as profit-taking after recent sharp gains and concerns over slowing second-quarter earnings momentum in the semiconductor sector weighed on investor sentiment.
Yang Il-woo, a researcher at Samsung Securities Co., Ltd., said, "The second half of this year will be a period to watch closely as to whether the Korean stock market shifts from one where operating profit momentum matters most to one where valuation also matters." He added, "In a market where earnings momentum is the only thing that matters, upward revisions to earnings forecasts can later become a burden on share prices if they lead to the possibility of missing future estimates. But in a market where valuation also matters, upward revisions to future earnings forecasts can, with a time lag, become a driver of stock gains."
The KOSDAQ (Korea Securities Dealers Automated Quotations) also closed lower, down 21.34 points, or 2.46%, at 847.07. It opened 0.23% lower at 866.40.
In the KOSDAQ market, individuals bought 269.4 billion won worth of shares, while foreigners sold 44.7 billion won and institutions were net sellers of 227 billion won.


nodelay@fnnews.com Park Ji-yeon Reporter