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On July 26th, the KOSPI closed at 2731.90, marking a 0.78% increase from the previous day, driven by institutional buying ahead of the Personal Consumption Expenditure (PCE) price index announcement. In the securities market, institutions net bought 393.9 billion won, while individuals and foreigners net sold 36.7 billion won and 47.7 billion won, respectively. The KOSDAQ also saw a marginal increase, closing at 797.56, up 0.03%.
Lee Kyung-min, head of FICC Research at Daishin Securities, noted that the KOSPI experienced a rebound due to significant institutional buying, which countered the previous day’s steep decline. Despite this, he highlighted that the index was unable to fully recover and maintain its upward trajectory before the release of the PCE price index later that evening.
The market’s attention was particularly drawn to HD Hyundai Shipbuilding affiliates, which reported strong performance due to the booming shipbuilding industry. HD Hyundai Heavy Industries surged 16.90% to close at 207,500 won. HD Korea Shipbuilding & Marine Engineering Co. and HD Hyundai Mipo Co. also saw significant gains, closing at 198,800 won (up 8.16%) and 113,200 won (up 10.33%), respectively. HD Hyundai closed 2.53% higher at 80,900 won, and HD Hyundai Marine Solutions rose 4.28% to 138,900 won. Samsung Heavy Industries and Hanwha Ocean also posted gains, closing at 11,870 won (up 8.40%) and 30,950 won (up 6.72%).
HD Hyundai’s strong performance in the second quarter significantly contributed to this rally. The company reported an operating profit of KRW 879.9 billion, marking an 86.2% increase compared to the previous year. HD Korea Shipbuilding & Marine Engineering Co. and HD Hyundai Heavy Industries Co. reported profits of 376.4 billion won and 1956 billion won, up 428.7% and 185.5%, respectively. HD Hyundai Mipo turned a profit for the first time in seven quarters, recording an operating profit of 17.4 billion won.
Lee Jae-won, a researcher at Shinhan Investment & Securities, remarked, “It is a shipbuilding industry that is proven by performance. It is entering a super cycle characterized by both price increases and reductions in raw material costs, surpassing earlier peak-out concerns.
In the financial sector, Woori Financial Group saw a significant surge, closing at 16,180 won, up 11.36%. The group’s net profit for controlling shareholders in the second quarter was 931.4 billion won, a 49% year-on-year increase, exceeding market expectations by 18%. The company also announced a value-up plan, aiming to enhance corporate value within the banking sector.
This article was originally published by MK (Maeil Business Newspaper). For more detailed insights, visit MK’s stock section.