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Stock Market Index (Kospi) experiences decline after two consecutive days of increase due to profit-taking actions.

Stocks declined on Thursday, halting a prior two-day rally, as investors sold their holdings to secure their recent profits. The South Korean Won strengthened against the U.S. Dollar.

Stock market index, Kospi, experiences reverse trend after a two-day surge, driven by profit-taking...
Stock market index, Kospi, experiences reverse trend after a two-day surge, driven by profit-taking actions by investors.

Stock Market Index (Kospi) experiences decline after two consecutive days of increase due to profit-taking actions.

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In the heart of Seoul, Hana Bank's trading room displayed a closing of 3,079.56 points on June 26 for the Kospi, representing a dip of 0.92% or 28.69 points from the previous session. [YONHAP]

Taking a closer look at the recent market trends, the Kospi had been surging in June, recording a 14.16% rise compared to the end of May. However, this momentum was briefly halted on June 26, marking a decline after two straight days of trading. [5]

Despite the recent dip, the index had been rallying for five consecutive weeks prior, scoring a 17.89% gain, the largest five-week point and percentage increase since December 2020. [3] Yet, it's worth noting that the index's closing on June 26 fell 7.54% short of its record high close in July 2021 and 1.68% beneath the recent 52-week high hit on June 25, 2025. [3]

The Kospi's decline on June 26 was primarily due to profit-taking by investors. Analysts argue that the recent surge, fueled largely by hopes of government stimulus and optimistic market sentiment rather than actual corporate improvements, could pose a risk for new investors. [5]

The approaching corporate earnings announcements, starting mid-July, will provide a more grounded outlook on the market's trajectory. Key players like Samsung Electronics, LG Energy Solution, Hyundai Motor, SK Hynix, and KB Financial are set to report, with their actual earnings potentially shaping the market direction. [5]

Large-cap stocks saw a mixed to negative performance on June 26, with Samsung Electronics down 1.79%, Hyundai Motor down 3.46%, and LG Energy Solution down 0.34%. [4]

Foreign investors and institutions were net sellers on June 26, offloading 843.24 billion won, while individual investors bought 833.55 billion won in stocks. [4] External factors, such as easing Middle East tensions and expectations of U.S. Federal Reserve interest rate cuts, may have influenced market sentiment, although U.S. markets closed mixed on the day. [4]

In essence, the Kospi closed at 3,079.56 on June 26 after a brief pullback due to profit-taking while attempting to maintain an overall positive trend. Investors are now keenly focused on forthcoming corporate earnings reports to gain a clearer understanding of the market's future direction. [4][5]

  1. The government's decision to stimulate the economy might impact the market, as analysts have suggested that investing in the stock-market, driven more by optimistic sentiments than corporate improvements, could pose a risk for new investors.
  2. The finance sector, including key players such as Samsung Electronics and KB Financial, could significantly influence the stock-market direction, as their upcoming earnings announcements in mid-July could provide a more grounded outlook on the market's trajectory.

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