A Week Confirmed by Synergy: Positive Investor Sentiment Pushes KOSPI Higher (06-05-2025~06-13-2025)

오리 오리
Jun 17
2 min read

A 'Joint Rally' of Positive Sentiment and Policy Expectations

This week, the KOSPI demonstrated strong market resilience by showing a weekly upward trend despite the short-term shock from the US interest rate hike. Notably, our data analysis revealed that 'investor sentiment' based on news data also showed a positive trend throughout the week. This suggests that the market's rise was not merely propped up by policy expectations, but was a 'healthy rally' supported by positive investor sentiment. In this post, we will analyze the driving forces behind this 'joint rally' of both indicators using data.

This Week's Positive Investor Sentiment as Seen Through the 'Regression Analysis Slope'

Based on our 'Daily Sentiment Index,' we applied a linear regression analysis to analyze the trend over the week (5 trading days). The result showed that this week's 'Sentiment Index Slope' was +0.137.

This positive (+) value clearly indicates that despite negative news such as the US interest rate hike, positive news related to domestic policy overwhelmed it, putting the overall investor sentiment on an upward trend for the week.

Convergence with the Real Market: How Did KOSPI React?

Strong Synergy with the KOSPI Slope: The trend line slope for the KOSPI index over the same 5-day period also registered +2.5, showing the same positive (+) direction as the sentiment index slope (+0.137). This signifies a powerful convergence, where positive news sentiment led to actual buying pressure in the market.
(Policy Analysis) The core driver of this 'joint rally' was undoubtedly the ‘stock price boosting project through the revision of the commercial code by President Lee Jae-myung.’ News related to this policy diluted
the impact of negative external variables, and this is analyzed as the main factor that turned the slopes of both the sentiment index and the KOSPI index positive. The market judged the external headwind as temporary noise and responded positively to the more structural change of domestic policy.

In-Depth Analysis: What Made the 'Joint Rally' Possible?

So, how can we reframe this week's market? It wasn't a showdown between 'external shock' and 'internal expectation.' Instead, it was a week where 'internal expectation' drove all market factors.

Factor	Category	Market Impact	What the Data Captured
Domestic Market Stimulus	Main Driver	Formed positive news sentiment, induced real buying pressure, and led the stock price rally.	Sentiment Weekly Slope: +0.137 > KOSPI Weekly Slope: +2.5
US Interest Rate Hike	Minor Factor	Caused short-term volatility mid-week, but failed to affect the upward trend.	'Intraday Volatility' on the KOSPI chart (e.g., the negative candle on the 12th)

In conclusion, the two positive (+) slopes obtained from the linear regression analysis clearly show that 'a powerful internal tailwind dominated both market sentiment and price.

Conclusion and Outlook for Next Week

In conclusion, this week's market was a 'week of synergy,' as proven by two positive slopes (Sentiment +0.137 & KOSPI +2.5), where strong domestic policy expectations lifted both investor sentiment and the actual stock market. Our analysis has confirmed with data that the market's rally was based on solid, positive sentiment.

Next week, we will continue to track and analyze through data whether this positive sentiment can be sustained, or if new variables will emerge to change the slopes of these two indicators.