The KOSPI index, which started higher on the 20th, steadied at the 2520 level before turning lower in the afternoon. On this day, the KOSPI index closed slightly lower, while the KOSDAQ index saw a modest increase. Ahead of the inauguration of president-elect Donald Trump, referred to as 'strongman,' investors appeared to have lost clear direction in domestic indices. The inauguration ceremony will take place at 2 a.m. on the 21st our time.
On this day, the KOSPI index finished at 2520.05, down 3.50 points (0.14%) from the previous trading day. Foreign investors sold a net worth of 416.3 billion won in the securities market, while individuals bought a net worth of 275.2 billion won, and institutions purchased a net worth of 66.3 billion won.
Among the top market capitalization stocks, LG Energy Solution (5.71%), Celltrion (0.39%), and KB Financial (0.23%) rose, while Samsung Electronics (-0.56%), SK hynix (-1.17%), and Hyundai Motor (-1.42%) fell.
Lee Jae-won, a researcher at Shinhan Investment Corp., said, "The KOSPI index continued to be affected by president-elect Trump's inauguration, along with net selling by foreigners and a wait-and-see attitude," adding, "With reports that he will sign about 200 administrative orders on his first day in office, the short-term impact on the market is likely to be significant."
What is attracting attention in the financial market is the executive order related to illegal immigration. If the president-elect expels illegal immigrants, it could affect the labor market supply and wages. If citizens fill the positions left by immigrants, there is potential for a decrease in unemployment and an increase in wages. This may also influence the Federal Reserve's (Fed's) currency policy stance.
Park Sang-hyun, a researcher at iM Securities, noted, "There is a high possibility that the first executive order will be related to measures against illegal immigration," adding, "The content of Trump's first administrative orders will determine whether this early period will pose a risk of Trumpism or be a honeymoon phase for him."
The KOSDAQ index closed at 727.66, up 2.97 points (0.41%) from the previous day.
In the KOSDAQ market, individuals purchased a net worth of 110.4 billion won, while foreign investors sold a net worth of 104.4 billion won and institutions sold a net worth of 11.7 billion won.
Among the top market capitalization stocks, Alteogen (3.58%), ECOPRO BM (6.07%), and Ecopro (3.85%) increased, while Rainbow Robotics (-1.03%), LigaChem Biosciences (-0.96%), and others fell.
In the KOSDAQ market on this day, the rise of the Ecopro group was significant. Eugene Securities is believed to have led the stock price increase by changing its investment opinion on ECOPRO BM from 'conservative' to 'buy' for the first time in 22 months.
Han Byeong-hwa, a researcher at Eugene Securities, stated, "Trump's anti-electric vehicle policy and the European Union's easing of carbon emission regulations seem to have led to excessively negative perceptions about the electric vehicle market," continuing, "Concerns about the electric vehicle markets in the U.S. and Europe are overblown, and China's potential for a 'risk peak-out' has increased significantly."
By industry, electrical equipment (4.99%), steel (3.54%), and multi-utilities (3.53%) saw increases, while shipping companies (-6.28%), electrical equipment (-5.66%), and internet and catalog retail (-2.86%) declined.
On this day, the exchange rate of the won against the U.S. dollar in the Seoul foreign exchange market closed at 1451.7 won, down 6.6 won from the previous day.