2026-07-27 Korea Morning Market Briefing

One-line summary: After last week's rally, Kospi and Kosdaq fell by 5.72% and 5.32% respectively on July 24, and foreign and institutional investors sold a combined KRW 52 trillion in Kospi, making this week a period where supply stability will be checked before the sustainability of the rebound.

Market

On the previous trading day (2026-07-24), Kospi fell 406.27 points, or 5.72%, to 6,690.62. Kosdaq dropped 42.06 points, or 5.32%, to 748.22. Compared to July 23, both markets saw significant adjustments, continuing the volatility.

Kospi supply saw foreigners sell KRW 32.7 trillion and institutions sell KRW 19.5 trillion, countered by individuals buying KRW 51.8 trillion. In Kosdaq, foreigners sold KRW 131.5 billion and institutions sold KRW 358 billion, while individuals bought KRW 488.1 billion. Kospi foreigners switched to selling on July 24 after three consecutive days of net buying from July 21-23.

In futures, K200 foreigners sold 162 contracts net on July 24. U.S. after-hours futures as of the morning of July 27 were mixed with S&P500 futures +0.03%, Dow futures +0.44%, and Nasdaq100 futures -1.18%, a combination not favorable for domestic growth stocks.

Supply Points

Over the past 30 trading days, Samsung Electronics saw foreigners sell 27.84 million shares while institutions bought 3.29 million shares. SK Hynix saw foreigners sell 28.41 million shares and institutions sell 1.56 million shares, indicating weak foreign demand for both representative semiconductor stocks. In the overall market on the previous trading day, individuals' bargain hunting was strong, but the combined selling by foreigners and institutions, along with futures selling, are factors delaying confirmation of a rebound.

Announcements

The DART Major Announcement Report on the previous trading day included numerous announcements related to paid-in capital increases and convertible bonds. The characteristic was repeated financing and CB-related announcements focused on mid and small-cap stocks rather than a single large event. The dilution scale and conditions by stock need to be confirmed in the original announcements. (Source: DART)

Macro & Today's Schedule

As of July 24, 3-year government bond yields were 3.917%, 10-year were 4.392%, and the 3-year-10-year spread was 47.5bp. The credit spread between AA- 3-year corporate bonds and 3-year government bonds was 69.2bp, and BBB- was 641.7bp. In an environment where both interest rates and credit spreads are high, it's necessary to check the financing risks of low-credit, high-leverage stocks during a volatile market phase. (Source: Bank of Korea ECOS)

Today's market, with expectations for semiconductor earnings and AI investment debates about market peaks simultaneously highlighted, will have key observation points of whether foreign spot and futures supply stabilizes again and whether individual buying support will support the index bottom.

References

• "Samsung Electronics and SK Hynix Q2 earnings unveiled... Expectation of turning point in 'dizzying market phase'" — News1
• "Looming 'semiconductor peak theory'... Securities industry points to 'this time'" — Financial News
• "Power equipment stocks down 40%, not the end but the beginning?... 'Super cycle' from transformers to distribution" — Chosun Biz
• "'Round trip' Kosdaq... Supply concentration, individual investor neglect leads to return to 700 level" — Seoul Economic Daily
• "Big tech and semiconductor earnings to determine fate of tech stocks... FOMC, growing interest rate hike expectations" — Money Today

This briefing was automatically generated by langalpha based on public data (KRX·DART·Bank of Korea). It is not investment advice.