On the 18th, the KOSPI index once again gave up the 3200 mark. This is interpreted as the result of reduced expectations for a cut in U.S. interest rates and continued pressure from U.S. President Donald Trump on item-specific tariffs. Analysts noted that given the recent rebound fueled by expectations of rate cuts, it is now a point to be cautious of increased short-term volatility.
On that day, the KOSPI index recorded 3177.28, down 48.38 points (1.5%) from the previous trading day. The KOSPI index opened at 3202.63, down 0.71% compared to the previous day, and soon broadened its decline. The trading volume in the securities market remained low at around 8.77 trillion won, with foreigners selling 595.3 billion won, while individuals and institutions bought 436.4 billion won and 67.4 billion won, respectively.
The U.S. administration's release of a draft notice that includes transformers and construction machinery in its list of tariff derivatives led to significant declines in related stocks. HD Hyundai Electric and LS ELECTRIC fell by 5.33% and 6.84%, respectively, while HD Hyundai Infracore also plummeted by over 10%.
Semiconductor corporations also struggled this week due to concerns over the U.S. administration's semiconductor tariff announcement. Samsung Electronics dropped 2.23%, and SK hynix fell 3.25%. With predictions that the education tax payment by the five major banks will exceed 1 trillion won if the education tax amendment passes, financial stocks, including KB Financial (-5.3%), could not escape the downturn.
The KOSDAQ index closed at 798.05, down 17.21 points (2.11%) from the previous day. In the KOSDAQ market, foreigners and institutions registered net sales of 58 billion won and 119.6 billion won, respectively, while individuals recorded net purchases of 190.9 billion won.
As secondary battery-related corporations entered a period of pause, pharmaceutical and bio as well as semiconductor materials, components, and equipment companies were also adversely affected by tariff concerns. Ecopro and ECOPRO BM dropped by 5.4% and 4.27%, respectively. Peptron (-8.49%), HLB (-4.12%), LEENO Industrial (-1.17%), and EO Technics (-5.11%) also showed weakness.
Market participants are paying attention to comments from Jerome Powell, the Chair of the Federal Reserve, at the Jackson Hole meeting starting on the 21st. The Jackson Hole meeting is an event where central bank officials from around the world gather to discuss policy issues, and Powell has made several significant statements at this event in the past.
Lee Kyung-min, head of the investment strategy team at DAISHIN SECURITIES, said, "While we anticipate a clear signal for a rate cut, it is uncertain whether comments will meet or exceed market expectations," and noted, "Having recently rebounded based on expectations for rate cuts, it is a point to be wary of increased short-term volatility."