The Korea Composite Stock Price Index, led by U.S. President Donald Trump, showed an upward trend despite the "tariff war." Investors viewed tariffs as a bargaining chip and focused on leading sectors like defense and shipbuilding. The KOSDAQ index halted its six-day upward streak as the bio sector stagnated.
The Korea Composite Stock Price Index closed on the 11th at 2539.05, up 17.78 points (0.71%) from the previous day. Institutions and foreign investors led the index increase with net purchases of 248.6 billion won and 137.4 billion won, respectively. Individuals showed a selling bias with 469.4 billion won sold. Foreign investors especially continued to be "buyers" of KOSPI 200 futures for two consecutive trading days, increasing both spot and futures.
The stock prices of the two major KOSPI stocks, Samsung Electronics and SK hynix, both rose slightly compared to the previous day. Samsung Biologics set a new all-time high during the trading session. Additionally, Celltrion and NAVER continued to rise, while LG Energy Solution and Kia showed a downward trend.
The KOSDAQ index closed at 749.59, down 0.08 points (0.01%) from the previous day. This marked the first decline since the 3rd. The KOSDAQ index continued to rise during the session, but lost momentum in the latter half, eventually turning to decline during the simultaneous auction. In the KOSDAQ market, institutions and foreign investors each engaged in net selling of 31.1 billion won and 18 billion won, respectively, while individuals made net purchases of 70.2 billion won.
Among the top stocks by market capitalization in the KOSDAQ market, the bio sector stocks such as Alteogen, HLB, LigaChem Biosciences, and Sam Chun Dang Pharm generally showed weakness. OliX Pharmaceuticals continued its limit-up streak for two consecutive trading days due to a wide-ranging technology transfer contract secured with U.S. pharmaceutical company Eli Lilly.
Leading sectors were clearly defined. The defense sector continued its upward trend. Hanwha Aerospace hit a new all-time high, buoyed by "surprise results." LIG Nex1 was also strong.
Stock prices of shipbuilding companies, including Hanwha Ocean, HD Hyundai Heavy Industries, and Samsung Heavy Industries, also rose. It appears that the government's decision to invest 260 billion won to secure the future competitiveness of the shipbuilding industry positively affected investor sentiment.
The tariff impact was minimal, and expectations for the lifting of China's ban on Korean pop culture were intertwined, leading to strength in the entertainment sector, including HYBE, JYP Entertainment, and SME, as well as in the gaming sector with NCSOFT and Pearl Abyss.
The tariff policies pushed by President Trump did not have a significant impact on the overall stock market that day. Trump signed an executive order imposing a 25% tariff on steel and aluminum imports into the U.S., as he had announced earlier.
President Trump stated that tariffs would be imposed within 48 hours, and discussions on tariffs for other items, such as semiconductors, automobiles, and pharmaceuticals, would occur in the next four weeks. However, the market maintains a prevailing optimism, viewing it as a bargaining chip.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, evaluated that "well-known bad news is not really bad news." He noted that "Trump's justification for imposing tariffs is to strengthen U.S. manufacturing, but voices of concern are emerging within the U.S. regarding inflation, weakening alliances, and damage to industrial supply chains."
Events that could influence market sentiment are set to unfold. Tonight, Jerome Powell, the chair of the U.S. Federal Reserve (Fed), is scheduled to testify before the Senate. Depending on his remarks, which may not align with President Trump, both bond yields and the stock market could be affected. Powell is also expected to appear before the House on the 12th. On the same day, the U.S. Consumer Price Index (CPI) for January is also set to be released.