Impact of US Presidential Election Uncertainty... KOSPI Falls to 2760 Level

The market fluctuated following the news of U.S. President Joe Biden's withdrawal from the presidential race, causing the KOSPI index to fall to the 2760 level on the 22nd.

[Image source=Yonhap News]

According to the Korea Exchange, the KOSPI closed at 2,763.51, down 31.95 points (1.14%) from the previous session. The index opened at 2,790.99, down 4.47 points (0.16%) from the previous close, and the decline widened throughout the day.

In the securities market, foreigners and institutions sold a net amount of 86.5 billion KRW and 21.4 billion KRW, respectively. Foreigners showed a net selling trend for four consecutive trading days. Individuals had a net buying advantage of 139.6 billion KRW.

Lee Jaewon, a researcher at Shinhan Investment Corp., explained, "The unprecedented withdrawal of a sitting U.S. president from the re-election race highlighted a preference for safe assets amid election uncertainties. Additionally, the impact of profit-taking in U.S. tech stocks caused weakness in the Korean semiconductor sector."

Among the top market capitalization stocks, semiconductor shares such as Samsung Electronics (-1.66%) and SK Hynix (-2.15%) showed weakness. Hyundai Motor (-1.35%) and Kia (-0.34%) also declined.

Following Tesla's sharp drop, domestic secondary battery stocks also fell. LG Energy Solution (-4.92%), POSCO Holdings (-2.29%), and Samsung SDI (-4.20%) dropped significantly.

The KOSDAQ index closed at 809.96, down 18.76 points (2.26%) from the previous session. In the KOSDAQ market, foreigners and institutions sold net amounts of 187.2 billion KRW and 79.1 billion KRW, respectively, while individuals bought a net 260.7 billion KRW.