Anticipated Boost for South Korean Stocks in Sight
The expected outlook for the South Korean KOSPI on Thursday (August 28, 2025) is cautiously negative or weak, with a likelihood of continuing its recent losing streak due to global market pressures, especially in technology stocks.
The KOSPI had a brief respite on Wednesday, halting a three-day losing streak, but ended the day slightly above the 3,224.37 mark, having climbed 34.46 points or 1.08 percent. However, analysts remain cautious, predicting a flat or lower opening on Thursday.
The KOSPI's recent downward momentum can be attributed to declines in financials, industrials, and technology sectors. European and U.S. markets were mostly lower, and Asian markets tend to track these trends negatively. Technology stocks in particular are expected to remain pressured, which influences major KOSPI components like Samsung Electronics and SK Hynix.
Sector performance has been mixed but generally weak. Some big cap financials and industrial companies showed minor gains, but these were offset by declines in key technology stocks—important drivers of the Korean market.
The KOSPI Size Indices are undergoing their September rebalance review until August 31, which might lead to some stock migration and passive flow in the coming weeks. However, these are longer-term mechanical factors rather than immediate market movers for Thursday.
Market analysts remain cautious despite previous broad bullishness over the last year for the Korean stock market compared to other developed markets. The lack of clear bullish follow-through and the current technical chart signals suggest no immediate reversal is expected on Thursday.
In summary, the KOSPI is likely to open flat or lower on Thursday with continued pressure from technology stock weakness and global market caution as the main drivers. Investors are advised to exercise caution and closely monitor market developments.
The caution expressed by analysts towards the KOSPI's opening on Thursday can be linked to the recent downtrend in sectors such as finance, industry, and technology. The prolonged weakness in technology stocks, a significant component of the KOSPI, is contributing to this trend, especially as related to companies like Samsung Electronics and SK Hynix. Moreover, the continued pressure from global market caution is another major factor influencing the market's outlook on Thursday.
