The KOSPI, which experienced a sharp decline last week, may rebound due to a surge in buying interest. This week, significant events are scheduled, including earnings reports from major U.S. tech companies and domestic semiconductor firms, as well as the U.S. Federal Open Market Committee (FOMC) results, drawing market attention.
According to the Korea Exchange, on July 24, the KOSPI opened at 7,000.78, down 96.11 points (1.35%) from the previous session, and further declined to close at 6,690.62, a drop of 406.27 points (5.72%).
Alphabet, Google's parent company, sparked optimism for increased investment in artificial intelligence (AI) after announcing plans to expand capital expenditures in its second-quarter earnings report. However, this upward momentum was short-lived as tensions in the Middle East escalated, causing fluctuations in international oil prices and quickly dampening risk appetite, leading to a further decline in the KOSPI.
On the last trading day of the previous week, U.S. stock markets closed mixed. The Dow Jones Industrial Average rose by 0.46% and the S&P 500 increased by 0.05%, while the tech-heavy Nasdaq Composite fell by 0.64%.
However, positive developments that could restore investor sentiment have emerged. Over the weekend, news broke of a $950 billion AI collaboration between major companies from South Korea and the U.S. in San Francisco, along with reports that the U.S. and Iran have ceased airstrikes, raising hopes for a recovery in investor confidence.
Domestic semiconductor giants are showing strength in pre-market trading. As of 8:16 a.m. on the day of reporting, Samsung Electronics was trading at 258,000 won, up 3.4% from the previous session, while SK Hynix recorded a 3.7% increase to 182,500 won.
This week, the primary focus of the market will be the earnings reports from major U.S. tech companies. In South Korea, SK Hynix will report its earnings on July 29, followed by Samsung Electronics on July 30. The outlook for AI investments and the semiconductor industry will likely influence market direction.
Lee Kyung-min, a researcher at Daishin Securities, stated, "With the earnings announcements from SK Hynix on July 29 and Samsung Electronics on July 30, along with conference calls discussing the AI industry and semiconductor sector outlook, there is potential for a re-entry of expectations for improved earnings and control of earnings uncertainty. The KOSPI may fluctuate around the 6,000 level early in the week, presenting an opportunity for increased investment."
Han Ji-young, a researcher at Kiwoom Securities, commented, "While volatility in the market has exceeded normal ranges, the premise that we have entered a mid-term bottom from a valuation and technical perspective remains intact. The key will be how much momentum for a rebound can be secured moving forward."
* This article has been translated by AI.
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