The KOSPI and KOSDAQ indexes showed weakness for the first time in four trading days after the U.S.-China trade negotiations. In the absence of significant news or economic indicator announcements that could impact the stock market, some profit-taking sales emerged, leading to a pause in the stock market.
On the 15th, the KOSPI index closed at 2621.36, down 19.21 points (0.73%) from the previous day. Foreigners had a net buying advantage of 2.644 trillion won and individuals had a net buying advantage of 717 billion won, but institutional investors sold 3.858 trillion won worth, causing a greater decline as the market progressed. Until today, foreigners had net purchased spot shares in the KOSPI market for seven consecutive trading days. However, they showed a selling advantage in futures for the first time in five trading days.
Among the top market capitalization stocks in the KOSPI market, Samsung Electronics, SK hynix, LG Energy Solution, Samsung Biologics, and Hyundai Motor showed weakness. Shares of Hanwha Aerospace, HD Hyundai Heavy Industries, and KB Financial traded at slightly higher prices than the previous day.
The KOSDAQ index closed at 733.23, down 5.82 points (0.79%). Foreigners net sold 1.214 trillion won in the KOSDAQ market. Individuals and institutions were net sellers of 1.249 trillion won and 140 billion won, respectively.
Among the top market capitalization stocks in the KOSDAQ market, Alteogen, Ecopro, HLB, and Ecopro BM saw declines in their stock prices. HUGEL, Peptron, and LigaChem Biosciences displayed strong performance.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, "With no significant macroeconomic issues, major U.S. indices fell slightly overnight, and Asian markets also experienced a slight decline today," adding that the market had entered a period of pause. Shinhan Investment Corp.'s Lee Jae-won commented, "This was a market cooling off after a short-term rise following the alleviation of the trade dispute between the U.S. and China," and emphasized the need to focus on trade negotiations and interest rates going forward.
According to the news, the fortunes of individual stocks fluctuated. Hanjin KAL, which had hit the upper limit for two consecutive days, saw its stock price plummet by 17% today. Earlier, the Hohyun Group had increased its stake in Hanjin KAL, narrowing the equity gap with Hanjin Group Chairman Cho Won-tae to 1.5%. As investors, considering the possibility of a management dispute, began to buy, the stock price surged; however, it was dampened by news that the Korea Development Bank had no immediate plans to sell its stake (10.58%) in Hanjin KAL.
In contrast, the stock price of HMM rose to 23,000 won during the day, setting a new high for the past year. HMM's operating profit for the first quarter increased by over 50%, alleviating concerns about the shipping industry due to the easing of the U.S.-China tariff war. Additionally, the influence of Lee Jae-myung, a presidential candidate from the Democratic Party of Korea, mentioning the transfer of HMM headquarters and the Arctic route contributed to its recognition as a policy theme stock.
The exchange rate of the won against the U.S. dollar (won-dollar exchange rate) displayed significant fluctuations. The Seoul foreign exchange market opened at 1410.9 won and closed at 1395.6 won. Following reports that Korean and U.S. foreign exchange authorities discussed exchange rate policies, it had dropped to the 1370 won level overnight. Later, the U.S. Treasury stated it would not include currency issues in trade negotiation agendas, leading to a rebound, but it returned to weakness again today.
Seo Sang-young, a researcher at Mirae Asset Securities, commented on the day's won strength (decline in the won-dollar exchange rate), saying, "I believe it is due to the continued influence of sell orders," and added, "The net purchases by foreigners in the Korean stock market are also a factor contributing to the falling exchange rate." He further noted, "Ultimately, unless the dollar's weakness continues indefinitely, it should be interpreted as a temporary event," predicting changes based on economic indicators from both Korea and the U.S.