The Korea Composite Stock Price Index (KOSPI) closed lower for the second consecutive trading session. There were hopes that if the impeachment motion against President Yoon Suk-yeol was passed, uncertainty would be alleviated and the stock market would rebound, but the result was the opposite. Foreign investors also showed net selling of stocks on this day.
On this day, the KOSPI closed at 2,456.81, down 32.16 points (1.29%) from the previous trading day. In the securities market, foreigners net sold 713.2 billion won, while individuals and institutions bought 465.5 billion won and 151.8 billion won worth of stocks, respectively. Foreign investors net sold more than 2.4 trillion won from April 4, the day after President Yoon declared martial law, until this day.
The top 10 stocks by market capitalization in the securities market showed mixed performance. While Samsung Electronics fell by 2.52%, SK Hynix rose by 2.62%. Samsung Biologics and Celltrion each declined by 2.5% and 1.53%, respectively. Kia rose by 0.42%, but Hyundai Motor dropped by 2.13%. Naver and Shinhan Financial Group also fell by 2.1% and 1.72%, respectively.
During the day, news was reported that the team of President-elect Donald Trump was pushing to eliminate subsidies from the Inflation Reduction Act (IRA) and impose tariffs on electric vehicles and batteries, leading to a simultaneous decline in secondary battery-related corporations. LG Energy Solution fell by 3.89%, LG Chem decreased by 4%, and Samsung SDI dropped by 6%.
The KOSDAQ index also closed lower. On this day, the KOSDAQ index finished trading at 694.47, down 4.06 points (0.58%) compared to the previous trading day. In the KOSDAQ market, foreigners and institutions net sold 123.8 billion won and 9.3 billion won, respectively, while individuals net bought 125.4 billion won.
The top 10 stocks by market capitalization in the KOSDAQ also generally declined. In particular, the drop in secondary battery-related corporations was significant. Ecopro and EcoproBM fell by 6.28% and 7.8%, respectively, while Enchem also dropped by 3.17%. Alteogen declined by 2.9%. HLB (-3.12%), Rigakembaio (-1.22%), Hugel (-0.74%), and Classis (-0.61%) also showed weakness.
In the case of politically themed stocks, which had been fluctuating, fortunes diverged. Stocks related to National Assembly Speaker Woo Won-sik surged, while those related to Democratic Party leader Lee Jae-myung fell sharply. Both HyosungONB and Bankware Global, classified as Speaker Woo's themed stocks, hit the upper limit of the daily price restriction, but stocks related to Leader Lee, including Orient Precision and Eastar Jet, declined by 12.59% and 7.62%, respectively.
Lee Kyung-min, head of the investment strategy team at Daishin Securities, noted, "The KOSPI index temporarily broke above 2,500 following the passing of the impeachment motion but has continued to decline for two consecutive days," adding, "With it uncertain how long the Constitutional Court's impeachment trial, which must take place within 180 days, will take, the positive factor of 'alleviation of political uncertainty' has already dissipated."
Research Institute analyst Lee Jae-won explained, "Pressure on the index has increased due to the Reuters report related to secondary batteries," and noted, "As concerns about the Federal Open Market Committee (FOMC) have grown, the strong dollar phenomenon continues, making it difficult for the index to rise due to foreign capital outflows and sluggish domestic consumption in China." The exchange rate for the Korean won against the U.S. dollar was recorded at 1,439.5 won as of 3:30 p.m. on this day.