Despite recent weakness in the US stock market, the domestic stock market, which had been on a gentle upward trend, closed sharply down on the 28th. Following the sharp decline in US tech stocks such as Nvidia the previous day and the tariff shock from US President Donald Trump, selling pressure from foreigners and institutions widened the losses in the domestic market.
On the day, the KOSPI closed at 2,532.78, down 88.97 points (3.39%). The KOSPI showed a shaky start at 2,585.61, down 36.14 points (1.38%), and then the selling pressure from foreigners and institutions intensified, expanding the decline. Foreigners and institutions sold 1.5566 trillion KRW and 615.8 billion KRW respectively, while individuals were net buyers with 2.0325 trillion KRW.
Woo Ji-yeon, a researcher at DS Investment & Securities, explained, "As the tariff exemption periods of major countries approach, President Trump's continuous remarks about tariff increases have stirred anxiety. Semiconductor, secondary battery, and chemical themes linked to Nvidia's plunge led the weakness today."
Most of the top market capitalization stocks closed down. Doosan (-9.03%), Korea Electric Power Corporation (-8.57%), Hanwha Aerospace (-8.47%), EcoPro BM (-7.95%), Samsung Heavy Industries (-7.12%), and LG Chem (-6.57%) fell sharply, while semiconductor leaders SK Hynix and Samsung Electronics also dropped 4.52% and 3.20% respectively due to the Nvidia shock. On the other hand, Hanjin KAL (0.97%), Kakao Pay (0.88%), Celltrion (0.71%), and Krafton (0.59%) closed slightly higher.
On the same day, the KOSDAQ closed at 743.96, down 26.89 points (3.49%). The index started at 760.10, down 10.75 points (1.39%). While foreigners and institutions sold 288.3 billion KRW and 123.6 billion KRW respectively, individuals alone bought 408.6 billion KRW.
Among the top market capitalization stocks, Enchem (-13.5%), Rainbow Robotics (-12.74%), EcoPro BM (-11.19%), Classys (-8.68%), Daewoo Electronics Materials (-7.79%), and EO Technics (-7.63%) declined. Conversely, Olix (5.57%), Silicon2U (3.29%), and GemVax (2.46%) rose. YG Entertainment, which recorded better-than-expected earnings in Q4 last year, also saw its stock price rise 1.94%.
The domestic stock market will be closed for one day next Monday and is scheduled to launch the Alternative Trading System (ATS) NextTrade on the 4th of next month. Researcher Woo said, "It appears that the Korean stock market's tolerance to tariffs has weakened compared to before. Since the US government's tariff negotiation events will begin next week, it is necessary to be cautious about increased volatility for the time being." He particularly recommended focusing on shipbuilding and defense stocks with remaining export momentum, as well as financial and software sectors that are less affected by tariffs.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
