Domestic Stock Market Briefing — April 25, 2026

Daily Index Update

The KOSPI briefly breached 6,500 during the session before retreating to close flat at 6,470. The three-day streak of record highs halted due to short-term fatigue and renewed Middle East tensions. Conversely, the KOSDAQ continued its momentum, climbing above 1,200 for the first time since 2000. The primary pressure came from foreign investors net selling over 2.1 trillion won in KOSPI stocks.

1 sources

koreatimes.co.kr

koreatimes.co.kr

Supply and Demand by Investor Type

• Foreigners: Net sold over 2.1 trillion won in KOSPI, likely profit-taking following the three-day rally. Selling was concentrated in semiconductor heavyweights like Samsung Electronics and SK Hynix.
• Institutions: While exact figures aren't confirmed, they appeared to absorb some of the selling pressure from foreigners.
• Retail (Individual) Investors: Net sold approximately 231.1 billion won in KODEX KOSDAQ150 ETFs to lock in gains. They shifted funds into KOSPI 200-related products and bet about 317 billion won (~$230 million) on semiconductor inverse ETFs.

Top Movers

Top Gainers

EcoPro (086520) +2.44%, KOSDAQ Led the KOSDAQ rally as a major secondary battery material stock, supported by continuous institutional buying.

EcoPro BM (247540) +0.96%, KOSDAQ Followed the trend as investor interest in secondary battery materials spread across KOSDAQ large-caps.

Samsung Electronics / SK Hynix (Semiconductors) — Maintaining earnings momentum Despite today's dip due to foreign profit-taking, their strong earnings remain a backbone for mid-to-long-term recovery expectations.

Top Decliners

Rainbow Robotics — KOSDAQ large-cap, faced profit-taking from retail investors.

Samsung Electronics (005930) — Faced heavy selling pressure from foreign investors.

SK Hynix (000660) — Retreated as foreign investors took profits after the stock hit a 52-week high yesterday.

Sector Trends

Bullish Sectors

• Secondary Batteries/Materials: Led by EcoPro (+2.44%) and EcoPro BM (+0.96%), this sector was the engine behind the KOSDAQ 1,200 breakout.
• KOSDAQ Tech: Broad strength as the index crossed 1,200, drawing capital into tech, bio, and small-to-mid-cap growth stocks.

Bearish Sectors

• Semiconductor Large-caps: Faced heavy foreign sell-offs despite strong earnings.
• Defense/Aviation: Negative sentiment emerged due to renewed tensions regarding the Strait of Hormuz between the U.S. and Iran.

Key Issues

KOSDAQ Crosses 1,200

• Details: First time since 2000. Driven by secondary battery materials and tech growth stocks.
• Impact: Boosted investor sentiment, though some retail investors used the opportunity to lock in ETF profits.

Foreign Net Selling of 2.1 Trillion Won

• Details: Foreigners hit the brakes on the 3-day KOSPI rally after it momentarily tested the 6,500 level.
• Impact: Limited the index's upside, creating caution regarding a potential short-term ceiling.

Semiconductor Earnings Momentum

• Details: Strong earnings from Samsung Electronics and SK Hynix fueled the previous day's rise to 6,500.
• Impact: Paradoxically, these good earnings became an excuse for profit-taking, but the long-term cycle remains intact.

Middle East Tensions

• Details: Reports of U.S.-Iran tanker friction have resurfaced, shaking confidence in diplomatic de-escalation.
• Impact: Triggered "risk-off" sentiment across Asian markets, stalling the KOSPI.

Retail Shift to U.S. Stocks

• Details: Domestic investors continue pouring money into U.S. stocks, maintaining their status as major overseas buyers through 2025.
• Impact: Creates a structural "leakage" of liquidity from the local market, potentially pressuring the Korean won.

Macro & External Factors

• KRW/USD Exchange Rate: Foreign selling of 2.1 trillion won acts as a downward pressure on the won.
• Global Valuation: According to Reuters, the KOSPI's 12-month forward P/E has dropped about 28% since the start of the year (per FactSet), meaning the recent rally is driven by actual earnings rather than just multiple expansion.

Tomorrow's Checkpoints

• KOSPI 6,500 Re-entry: Will the index stay above 6,500, or will foreign selling continue?
• Middle East Diplomacy: Any updates on the Iran-U.S. tensions will dictate market risk sentiment.
• Foreign Direction: Watch if the semiconductor selling is a short-term move or a longer shift.
• KOSDAQ 1,200 Support: Can 1,200 become a solid floor for the KOSDAQ?

Investor Guidance

• Short-term: Expect lingering selling pressure near the 6,500 KOSPI level. Consider buying on dips for semiconductors rather than chasing rallies.
• Mid-to-long term: The valuation remains attractive (falling forward P/E), and the semiconductor cycle provides a solid long-term thesis.
• Risks: Monitor potential Middle East escalations, foreign capital outflows, and the retail shift toward U.S. markets.

Expert Comments

Reuters cited experts noting that the KOSPI's rally is "earnings-driven," with the forward P/E dropping despite a 44.5% gain this year, making it an attractive market for global investors. Bloomberg previously highlighted that Korea's world-class rally is supported by structural improvements and strong tech-driven earnings.