On January 21, the domestic stock market opened with a sharp decline of over 1%, impacted by external uncertainties triggered by U.S. President Donald Trump. However, bargain hunting during the session helped the market recover the 4,900-point level. According to market analysts, although Trump-induced volatility may persist in the short term, the market is expected to gradually stabilize ahead of major corporate earnings events scheduled for next week.
On this day, the KOSPI index started at 4,808.94, down 1.57% from the previous session, and briefly fell to the 4,800 level in early trading, showing signs of instability. However, it quickly rebounded during the morning session, regaining the 4,900-point mark and recovering much of its earlier losses. As of 10:25 a.m., the KOSPI stood at 4,897.26, up 0.24% from the previous trading day. Foreign investors and institutions bought 477.4 billion won and 38.7 billion won, respectively, driving the index higher, while individual investors sold off 574.5 billion won.
Most sectors declined in the morning session. The largest drops were seen in pharmaceuticals, securities, general services, non-metallic minerals, machinery and equipment, chemicals, and IT services. At the same time, the volatility index rose by 1.59%.
The main driver of the rally was Hyundai Motor Company, which surged 10.23%. The stock hit a new 52-week high during the session following analyst forecasts that its share price could reach 800,000 won, backed by productivity innovations led by its subsidiary, Boston Dynamics (BD). Kia also recorded a gain of over 4%.
Meanwhile, despite a risk-off sentiment in the U.S. New York stock market overnight, which led to sell-offs in technology stocks such as Nvidia (-4.38%) and Broadcom (-5.43%), large-cap semiconductor stocks like Samsung Electronics (up 2.48%) and SK Hynix (up 0.67%) advanced during the morning session. Other major stocks by market capitalization, such as LG Energy Solution, Samsung Biologics, Hanwha Aerospace, HD Hyundai Heavy Industries, and Doosan Enerbility, declined.
At the same time, the KOSDAQ index was down 2.51% from the previous session, standing at 951.86. The index opened at 958.05, down 1.88% from the previous session, and fluctuated between the 940 and 960 range. While individual investors made net purchases of 420.2 billion won, foreign investors and institutions sold 195.4 billion won and 214.6 billion won, respectively, putting pressure on the market.
Market analysts attribute the day's decline to the shock from the sharp fall in the New York stock market the previous day, as well as profit-taking adjustments following a recent rapid rally. However, they believe the current volatility is unlikely to lead to a trend reversal. Han Ji-young, a researcher at Kiwoom Securities, stated, "It is important to note that the current external uncertainties, such as Trump-induced tariffs and Federal Reserve policy uncertainty, as well as aftershocks from rising interest rates in Japan, are unlikely to undermine the narratives or earnings visibility of leading stocks."
He added, "The profit fundamentals of key leading sectors, such as semiconductors, remain solid. Therefore, any adjustment pressure that may arise in the future will only trigger daily volatility driven by profit-taking, and is unlikely to result in a trend reversal."
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