A Rollercoaster Week… Only Stocks with Strong Earnings Survived [Kim Geun-hee’s Market Lab-up]

The KOSPI closed the week swinging sharply between steep declines and surges. Amid widespread market volatility, stocks with solid fundamentals such as Kumho Tire and Amorepacific managed to survive. In contrast, stocks that had risen solely on expectations fell sharply across the board.

According to data from Korea Exchange on the 1st, the KOSPI closed at 6,595.45 points, down 95.17 points (1.42%) compared to Jeonju for the last week of July (July 27–31).

The KOSPI plummeted for two consecutive days on the 28th and 29th of last month when circuit breakers were triggered twice. On the 30th, it failed to rebound and fell another 1.23%. Over this period, the KOSPI’s decline reached 17.2%. However, on the 31st of last month, the KOSPI surged by 1,001.89 points—or 17.91%—in a single day, marking the highest one-day gain in KOSPI history.

Leading stocks such as Samsung Electronics and SK Hynix also experienced a rollercoaster ride during the week. Both stocks had been on a downward trend from the 27th to the 30th of last month but surged sharply on the 31st. On that day, SK Hynix, SK Square, Samsung Electronics Preferred, and Samsung Electric closed at their daily price limits. Samsung Electronics jumped 26.81%. This was due to concerns over AI monetization easing and a reduced likelihood of forced liquidation and selling by U.S.-based Leopold’s tech leverage funds.

Weekly performance rates were as follows: △Samsung Electronics +5.21% △Samsung Electronics Preferred +7.85% △Samsung C&T +2.78% △SK Hynix -2.33% △SK Square -6.4%. Among stocks other than the leading ones, differentiation emerged based on earnings performance. Among KOSPI stocks (market capitalization of 1 trillion won or more and weekly trading volume of 100 billion won or more), Kumho Tire recorded the highest gain at 18.92%.

Kumho Tire announced on the 30th that its second-quarter operating profit rose 4% year-on-year to 182.2 billion won, while revenue increased by 9.1% to 1.3328 trillion won. Driven by sales growth centered in North America and Europe, it posted results exceeding market expectations. LG Household & Health Care (+15.49%), Amorepacific (+10.17%), and Woori Financial Holdings (+8.91%) also reported second-quarter earnings that surpassed market expectations.

Notably, LG Household & Health Care’s second-quarter operating profit surged 87.5% year-on-year to 102.8 billion won, thanks to improved profitability in its North American business centered around “Dr. Groot.” For the first time, North American sales exceeded those in China.

In contrast, energy stocks that had risen on expectations tied to rising international oil prices from the 20th to the 24th of last month fell again. SK E&S and HD Hyundai Energy Solutions plummeted by 43.82% and 31.65%, respectively.

Doosan FuelCell and HD Hyundai Marine & Engine also tumbled after reporting earnings below market expectations. Doosan FuelCell fell 42.64%, while HD Hyundai Marine & Engine dropped 26.85%. Doosan FuelCell turned from profit to loss compared to the same period last year, with an operating deficit of 50.9 billion won.

NH Investment & Securities researcher Jeong Yeon-seung said, “Sales were sluggish due to deferred fuel cell sales and production gaps,” adding that he is maintaining a “HOLD” rating but lowering the target price from 80,000 won to 34,000 won.

HD Hyundai Marine & Engine’s operating profit was 31.3 billion won, about 11% below market expectations. SK Securities researcher Han Seung-han explained that this was due to reduced engine division sales caused by adjustments in delivery schedules.