KOSPI Ends Slightly Lower at 2505.86 Amid Cautious Wait for US Tariff Announcement

KOSDAQ Falls 1%
Cautious Sentiment Grows in the Market

On the 2nd, both the KOSPI and KOSDAQ indices closed slightly lower. This is interpreted as a cautious stance ahead of the announcement of reciprocal tariffs by U.S. President Donald Trump, which heightened market watchfulness.

On that day, the KOSPI closed at 2,505.86, down 0.62% from the previous day. After starting slightly higher at 2,525.62, it briefly rose to the 2,530 level in the morning but soon declined.

By investor type, foreigners sold a net 725.5 billion KRW worth of stocks. Individuals and institutions bought net amounts of 476.6 billion KRW and 150.2 billion KRW, respectively.

Almost all sectors closed lower. The metals sector had the largest drop at 2.62%. Other sectors that fell more than 1% included chemicals (-1.76%), pharmaceuticals (-1.63%), finance (-1.57%), and transportation equipment & parts (-1.02%). The sectors that rose the most, such as securities (0.43%) and food & tobacco (0.30%), remained in slightly positive territory.

Among the top 10 market capitalization stocks, many also declined. Celltrion had the largest drop at -2.9%, followed by Hanwha Aerospace (-1.1%), Hyundai Motor (-1.0%), Kia (-0.9%), Samsung Biologics (-0.9%), and NAVER (-0.7%). KB Financial (1.1%), SK Hynix (0.5%), Samsung Electronics (0.1%), and LG Energy Solution (0.1%) rose.

The KOSDAQ's decline was even greater. It closed at 684.85, down 0.95% from the previous day. It started up 0.57% at 695.37 but turned downward and widened its losses.

In the KOSDAQ market, foreigners alone sold a net 266.5 billion KRW. Individuals and institutions bought net amounts of 253.8 billion KRW and 25.6 billion KRW, respectively.

Most sectors also fell. The largest declines were in general services (-1.96%), finance (-1.88%), electrical & electronics (-1.85%), and other manufacturing (-1.44%). Sectors that rose included textiles & apparel (1.96%), non-metallic minerals (1.29%), and construction (0.56%).

The fortunes of the top market cap stocks diverged sharply. Stocks such as Rigachem Bio (-4.9%), EcoPro BM (-4.8%), EcoPro (-2.9%), Alteogen (-2.6%), and HLB (-2.9%) showed declines of around 2-5%. Conversely, Classys (5.0%) and Hugel (2.5%) showed an opposite trend.

This week, the cautious stance is seen as a result of consecutive major events ahead. The U.S. will announce reciprocal tariffs at 4 p.m. local time on the 2nd (5 a.m. KST on the 3rd). The White House stated that the tariffs will be implemented immediately upon announcement. Since the tariff rates have not yet been clearly disclosed, uncertainty remains. The Constitutional Court will announce the impeachment trial result of President Yoon Seok-yeol at 11 a.m. on the 4th.