On the 24th, the Korea Composite Stock Price Index (KOSPI) closed lower after fluctuating in a tight range. The transaction amount remained at 6 trillion won. The political instability ahead of the impeachment ruling of President Yoon Suk-yeol and the uncertainty over the U.S. mutual tariffs contributed to a cautious sentiment. Even semiconductor stocks were unable to gain traction.
According to the Korea Exchange, the KOSPI index closed at 2632.07, down 11.06 points (0.42%) from the previous trading day. The index started at 2636.43, down 6.70 points (0.25%) from the previous close, briefly turning upward during the morning but soon transitioned back into a downtrend without a rebound.
Both individuals and institutions contributed to the decline in the index with 'sell' actions, selling a net worth of 71 billion won and 3.2 billion won, respectively. Despite foreign investors turning to net buying upon news of the dismissal of Prime Minister Han Duck-soo's impeachment motion, their buying was insufficient to drive up the index, totaling only a net purchase of 5.9 billion won.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, "While there was some influx of expectations that domestic political risks would be alleviated, the crucial issue, the impeachment trial of President Yoon Suk-yeol, does not even have a set schedule." He mentioned that political anxiety remained, dominating a cautious sentiment in the market.
Amidst the prevailing cautious sentiment, the transaction amount of the KOSPI remained at 6.8 trillion won, the lowest level so far this year amid a rebound in the KOSPI index. On Jan. 2, the transaction amount was 6.9 trillion won. Just on the 21st, the KOSPI transaction amount exceeded 14 trillion won.
The upcoming U.S. mutual tariffs, scheduled to take effect on the 2nd of next month, also added pressure to the domestic stock market. Reports from The Wall Street Journal suggested that tariffs on specific industries such as automotive, pharmaceuticals, and semiconductors are unlikely to be enforced, but there was only a minor response in automotive sector stock prices.
The rally in semiconductor stocks that led last week's KOSPI rebound, fueled by expectations of an improvement in the memory semiconductor market, also came to a halt. The significant drop in stock prices for Micron Technology, known as a bellwether for memory semiconductors, which fell over 8% on the New York Stock Exchange on the 21st, had a considerable effect.
The stock prices of major semiconductor shares, Samsung Electronics and SK hynix, which account for a quarter of the market capitalization of the KOSPI, fell by 1.94% and 1.86%, respectively. Notably, Samsung Electronics' stock price decline was the first recorded after a 0.36% drop on the 13th, marking seven trading days.
In addition, most high-cap stocks in the KOSPI saw declines. Specifically, shipbuilding stocks such as HD Hyundai Mipo and LNG-related stocks including POSCO Holdings and SK Gas halted their recent rises and closed lower. This decline appeared influenced by anxiety ahead of the resumption of short selling.
However, automobile-related stocks such as Hyundai Motor and Kia saw gains. Reports indicated that the White House is expected to narrow the scope of tariffs that were scheduled for April 2, and another report noted that Hyundai Motor and Kia's cumulative sales in the U.S. had exceeded 29.3 million units through February of this year.
The KOSDAQ index closed higher. It finished at 720.22, up 0.81 points (0.11%) from the previous day. The index started at 721.39, up 1.98 points (0.28%), briefly turning down but ultimately closing higher thanks to individual buying, with investors purchasing a net total of 59.2 billion won.
Pharmaceutical and biotechnology stocks rebounded collectively on this day. Notably, HLB, which had declined last week due to the failure to obtain new drug approval, saw a surge of over 15% due to bargain hunting. Nature Cell's stock price soared to its limit following news of its 'JointStem' innovative therapy designation from the U.S. Food and Drug Administration (FDA).
YG Entertainment, SME, and others showed strong performance. Reports mentioned that the foreign ministers of South Korea and China agreed to cooperate in restoring cultural exchanges during a diplomatic meeting. However, stocks in the secondary battery sector saw weakness due to investment sentiment being dampened by the trading suspension of Kumyang.
Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,467.7 won, up 5 won compared to the previous trading day as of 3:30 p.m. Although the mention of tariff flexibility by former President Donald Trump had a positive impact, the rate rebounded following the decision to dismiss Prime Minister Han Duck-soo's impeachment.