South Korea’s KOSPI closed the week on a strong footing, ending at around 8,088.34 on Friday after surging 5.76% in the final session, as concentrated buying in heavyweight technology and battery stocks capped a volatile week dominated by foreign portfolio rebalancing and institutional inflows.
The benchmark spent much of the week swinging between gains and losses as investors navigated heavy overseas portfolio rebalancing, before sentiment improved on broad-based buying in the second half of the week.
On Monday, June 29, the KOSPI erased an intraday decline of as much as 3.4% to finish slightly higher after investors responded positively to investment plans announced by major South Korean conglomerates, helping reverse early weakness.
Trading remained choppy on Tuesday, June 30, as foreign investors continued adjusting their portfolios, with rebalancing flows keeping pressure on the market.
Momentum shifted on Wednesday, July 1, when institutional investors and foreign funds turned net buyers of selected large-cap stocks, particularly semiconductor and secondary battery companies, lifting the benchmark higher.
The rally accelerated on Thursday, July 2, with broad-based buying delivering one of the KOSPI’s strongest daily performances of the week and pushing the index back into the 8,000-point territory.
Buying momentum continued into Friday, July 3, as improving risk appetite and strong demand for major index constituents drove the benchmark to around 8,088.34, representing a 5.76% gain from the previous session and sealing a solid weekly rebound.
Throughout the week, movements in South Korea’s heavyweight chipmakers and secondary battery makers remained the biggest drivers of the market, with investor demand for these sectors producing outsized swings in the benchmark.
Large-scale portfolio rebalancing by overseas institutional investors also remained a dominant theme. The flows followed heavy foreign selling seen earlier in June before investors returned to selectively accumulate blue-chip stocks during the week.
Corporate investment announcements from major business groups further supported sentiment, particularly on June 29, when they helped the KOSPI recover from its steep intraday fall.
The benchmark traded within a broader range of approximately 7,378 to above 8,136 during the recent period of heightened volatility, reflecting the market’s sharp swings over the past several weeks.
Looking ahead, investors are expected to monitor whether foreign portfolio rebalancing continues to influence trading, alongside earnings results and capital expenditure updates from Samsung, SK Group and major battery suppliers. Regulatory comments on leveraged exchange-traded funds will also remain in focus after previous guidance contributed to sharp market sell-offs in late June.
