South Korea’s benchmark KOSPI Composite Index posted its third consecutive weekly gain, lifted by improving sentiment around US-South Korea trade talks and strong buying interest in financial and shipbuilding stocks.
The KOSPI closed 0.18% higher on July 25 at 3,196.05, recovering from midweek volatility and capping a steady weekly advance. The index traded within a range of 3,169.9 to 3,237.97 during the week, reflecting cautious optimism amid external headwinds.
Investors were encouraged by signs of progress in trade negotiations with the US ahead of a key Aug 1 tariff decision. The improved tone spurred inflows into key sectors, particularly banks and exporters.
Leading the rally were financial stocks: Shinhan Financial, KB Financial and Hana Financial that gained between 1.7% and 2.7%. Meanwhile, HD Hyundai Heavy Industries surged nearly 6% and Hanwha Ocean rose more than 1%, helping lift the broader industrial sector.
However, gains were tempered by weakness in major tech counters. Samsung Electronics slipped 0.2%, SK hynix fell over 1% and LG Energy Solution declined amid concerns over demand and supply chain risks tied to potential trade restrictions.
The trading session on July 25 saw turnover of approximately 9.8 trillion won, with 386 million shares traded. Foreign and institutional investors were net buyers, contributing 269 billion won and 110 won billion respectively, while retail investors locked in profits with net sales of 461 billion won. Market breadth remained negative, with 504 decliners outnumbering 370 gainers.
While the tech sector’s underperformance weighed on broader sentiment, analysts remain optimistic about continued support from domestic institutions and improving export conditions.
Looking ahead, traders expect the index to remain range-bound between 3,170 and 3,200, pending further developments in trade negotiations and second-quarter corporate earnings from major electronics firms.
