Donald Trump, the President of the United States, reversed his stance on the timing of mutual tariff imposition, causing concerns about tariff uncertainty to grow. Despite the situation, the KOSPI index showed a solid performance by breaking through its previous peak. Foreign investment exited the market, but individual investors purchased stocks backed by expectations surrounding mandatory share buyback policies.
On the 9th, the KOSPI index closed at 3,133.74, up 18.79 points (0.60%) from the previous trading day. Starting at 3,125.73, which was up 10.78 points (0.35%) from the previous session, the KOSPI index showed a slight decline early in the session but soon turned upward. In the afternoon, it even recorded its highest point in the past year at 3,137.17.
Individuals engaged in net buying from the start of the session, purchasing a total of 430.8 billion won. Foreign investors and institutions recorded net selling of 425.2 billion won and 57.9 billion won, respectively.
The outflow of foreign funds is interpreted as a consequence of President Trump confirming the timing of tariff imposition to August the day before. Tariffs on copper were set at 50%, and tariffs on semiconductors and pharmaceuticals are also expected to be announced by the end of July, leading to rising concerns about overall inflation.
However, unlike Korea, U.S. stock markets did not react significantly to the tariffs. It appears to be a case of 'TACO' (Trump Always Comes Over), spotlighting the tariff uncertainty raised by Trump's reversal within a day, but overall sentiment seems to suggest that it is not regarded as a significant message.
In fact, the day before mentioning the tariff imposition schedule, on the 7th, Trump sent tariff letters to 14 countries, including Korea and Japan, and during a dinner with Israeli Prime Minister Benjamin Netanyahu, he mentioned to reporters, 'We may extend the timing of the tariff imposition beyond August 1 depending on the negotiation situation.'
In the domestic market, foreign investment appears to have exited due to higher-than-expected tariff rates, which increased the earnings burden on export-oriented corporations. However, for individual investors, expectations about the policies of the Lee Jae-myung administration and major companies' second-quarter earnings announcements played a more significant role in boosting investment sentiment than tariff uncertainty. Policy themes included the mandatory stock buyback bill and initiatives to recognize cryptocurrency businesses as venture companies.
Related to mandatory stock buybacks, securities stocks with high share buyback ratios showed strong performances. Bookook Securities recorded a ceiling price at 60,600 won, while Shinyoung Securities, SK Securities, Daishin Securities, LS Securities, Eugene Securities, Hyundai Motor Securities, and Mirae Asset Securities also showed gains. News that a plan to recognize cryptocurrency businesses as venture companies is being pursued for the first time in 8 years has led to an upward trend in related companies and stablecoin theme stocks.
Lee Jae-won, a researcher at Shinhan Investment & Securities, noted, 'Expectations for the collection of opinions on the bill and its passage are likely to continue,' adding that 'the exclusion of the focused voting system from the company law amendment has provided additional upward momentum for the index with an expansion of shareholder value.'
On that day, the KOSDAQ index closed at 790.36, up 6.12 points (0.78%) from the previous trading day. Starting at 786.11, which was up 0.24% from the previous day, the KOSDAQ index showed strength throughout the day. Institutions recorded net selling of 68.5 billion won, while individuals and foreigners recorded net selling of 2.3 billion won and 51.4 billion won, respectively.
The KOSDAQ market has not seen significant fluctuations because there are few holding companies affected by the company law amendment, but it has been significantly influenced by stock buyback-related policies. Stocks like Infovine and MAKUS, which have high share buyback ratios, showed strength, as did sectors like cosmetics and aerospace, which have expectations for strong second-quarter performances.
On that day, the exchange rate in Seoul's foreign exchange market closed at 1,375.2 won, up 3.7 won from the previous day against the U.S. dollar.