KOSPI Index Rebounds Above 4000 Amid Tax Changes and Positive Market Sentiment
The KOSPI index regained its position above 4000 just a day after it had fallen below this mark on the 7th. This recovery is attributed to the anticipated end of the longest government shutdown in the U.S. and the news that the maximum tax rate on separated dividend income will be lowered. Analysts suggest that the revised tax proposal has created favorable conditions for foreign investors to steadily inject funds into the market.
On the 10th, the KOSPI index closed up 3.02% at 4073.24, buoyed by institutional investors who purchased 1.3085 trillion won worth of stocks in the securities market, significantly boosting the index.
The notable rise of the KOSPI compared to other Asian countries on this day was primarily due to the announcement regarding the reduction of the maximum tax rate on separated dividend income from 35% to 25%. The government and the ruling party reached a consensus on this tax reduction, which led to a strong performance in high-dividend stocks, particularly in the holding and financial sectors.
On this day, the KRX Securities Index surged by 6.32%, recording the highest increase among all indices. KB Financial reached a peak of 132,500 won during trading, marking a 7.11% rise and setting a new 52-week high. Other holding companies such as SK (up 9.29%) and HD Hyundai (up 6.51%) also showed strong upward momentum.
On the 8th, Jensen Huang, CEO of NVIDIA, mentioned an increasing demand for wafers from TSMC, which also boosted stocks related to artificial intelligence (AI). SK Hynix saw its shares rise by 4.48%, finishing the day at 606,000 won, reclaiming the 600,000 Hynix status.
Experts anticipate that the reduction in the maximum tax rate on separated dividend income will lead to a steady inflow of foreign capital into the domestic stock market. While the market has surged rapidly, there may be increased short-term volatility due to profit-taking sales as the year progresses. However, the conditions appear favorable for a long-term upward trend in the market.
On the 10th, the KOSPI index closed up 3.02% at 4073.24, buoyed by institutional investors who purchased 1.3085 trillion won worth of stocks in the securities market, significantly boosting the index.
The notable rise of the KOSPI compared to other Asian countries on this day was primarily due to the announcement regarding the reduction of the maximum tax rate on separated dividend income from 35% to 25%. The government and the ruling party reached a consensus on this tax reduction, which led to a strong performance in high-dividend stocks, particularly in the holding and financial sectors.
On this day, the KRX Securities Index surged by 6.32%, recording the highest increase among all indices. KB Financial reached a peak of 132,500 won during trading, marking a 7.11% rise and setting a new 52-week high. Other holding companies such as SK (up 9.29%) and HD Hyundai (up 6.51%) also showed strong upward momentum.
On the 8th, Jensen Huang, CEO of NVIDIA, mentioned an increasing demand for wafers from TSMC, which also boosted stocks related to artificial intelligence (AI). SK Hynix saw its shares rise by 4.48%, finishing the day at 606,000 won, reclaiming the 600,000 Hynix status.
Experts anticipate that the reduction in the maximum tax rate on separated dividend income will lead to a steady inflow of foreign capital into the domestic stock market. While the market has surged rapidly, there may be increased short-term volatility due to profit-taking sales as the year progresses. However, the conditions appear favorable for a long-term upward trend in the market.
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