The South Korea-U.S. summit took place in a warm atmosphere, but the specific details investors had expected were not announced. Following the judgment that major materials have disappeared, the KOSPI index closed lower.
The KOSPI index closed at 3,179.36, down 30.50 points (0.95%) from the previous trading day on the 26th. On this day, the KOSPI index opened at 3,199.92, down 9.94 points (0.31%) from the previous trading day, fluctuating around the 3,180 level before increasing its drop.
Individuals made a net purchase of 847.4 billion won, while foreigners and institutions sold 682.2 billion won and 264.2 billion won, respectively.
The expectation of a rate cut in the U.S. in September has somewhat retreated, interpreted as the lack of specific details regarding tariffs or negotiations during the South Korea-U.S. summit.
Recently, Jerome Powell, chair of the U.S. Federal Reserve, mentioned sluggish employment, which had increased expectations for U.S. rate cuts, but these expectations seem to be waning again. Diagnoses indicate that inflation concerns remain high. Attention is focused on the U.S. personal consumption expenditure (PCE) price index set to be released on the 29th. Experts expect the PCE to rise by 2.9% compared to last year.
The results of the South Korea-U.S. summit were somewhat disappointing. On the 25th, local time in the U.S., President Lee Jae-myung and U.S. President Donald Trump held a summit in the Oval Office. The two leaders maintained a warm atmosphere throughout, but no major details such as industrial cooperation were announced.
Jo Yeon-joo, a researcher at NH Investment & Securities, noted, "It alleviated uncertainties regarding diplomatic conflicts with the U.S. by reaffirming the cooperation and alliance between the two countries in a warm atmosphere," while adding, "The easing of the 15% tariff on Korea and the $350 billion scale of investment to the U.S. should be watched in the future."
Lee Jae-won, a researcher at Shinhan Investment Corp., said, "There was a lack of a documented declaration containing the agreements the market had anticipated," and observed, "The absence of specific figures such as investment amounts, tariff rates for semiconductor and pharmaceutical items, and specific proposals regarding nuclear and shipbuilding cooperation is not enough to serve as a catalyst for price increases compared to expectations."
In particular, profit-taking selling focused on industries that had risen, such as shipbuilding and nuclear energy. Stocks related to shipbuilding, which rose in early trading after being mentioned by President Trump during the meeting, also turned to decline. Among the shipbuilding stocks, HD Hyundai Heavy Industries, Hanwha Ocean, and North Korea-related stocks Ananti and Good People closed lower.
However, Samsung Heavy Industries closed higher on news that it signed a memorandum of understanding (MOU) to establish a strategic partnership with Biger Marine Group for the maintenance, repair, and operation (MRO) support of the U.S. Navy, modernization of shipyards, and joint shipbuilding.
Nuclear power stocks, including Doosan Enerbility, Hyundai E&C, and Korea Electric Power Corporation, also fell.
However, the KOSDAQ index fared relatively well. The KOSDAQ index closed at 801.66, up 3.64 points (0.46%).
The KOSDAQ market was led by foreign investors. Individuals and institutions made net sales of 117.2 billion won and 32.3 billion won, respectively, while foreigners alone bought 160.3 billion won.
This researcher explained, "With biotech and media and entertainment-related stocks rising, they supported the downside of the index," adding, "Most large-cap stocks in the KOSDAQ, which comprise top market capitalization, are differentiated from export-oriented KOSPI stocks."