As conflict between the United States and Europe over Greenland intensified and investment sentiment for risk asset weakened, the KOSPI index again set a record high. Foreign funds flowed in, and large caps such as semiconductors and automobiles were strong. In contrast, the KOSDAQ market fell sharply as biotech stocks plunged on the shock stemming from Alteogen.
On the 21st, the KOSPI index closed at 4,909.93, up 24.18 points (0.49%) from the previous trading day. It renewed its record high on a closing basis after two sessions. The KOSPI opened around the 4,800-point level, down more than 1.5%, but after repeated swings, it rebounded.
That was because foreign funds flowed in. Foreign investors posted a net purchase of 450 billion won on the Korea Exchange. Institutions also net bought 321.6 billion won, while individuals alone were net sellers of 997.1 billion won.
After U.S. President Donald Trump said that if no agreement is reached on securing Greenland he would impose a 10% tariff on European countries, concerns about "sell America" grew, and the KOSPI index fell more than 1% early in the session.
Among top market-cap stocks that day, Hyundai Motor surged more than 14%, while Kia (5.00%), Samsung Electronics (2.96%), and Hanwha Aerospace (3.08%) also rose. By contrast, Doosan Enerbility (-4.20%), Samsung Biologics (-2.45%), LG Energy Solution (-2.11%), and SK hynix (-0.40%) declined.
The KOSDAQ index closed at 951.29, down 25.08 points (2.57%) from the previous trading day. The weakness in the KOSDAQ market was largely due to a 22.35% plunge in bellwether Alteogen. Investor sentiment froze on news that the size of the technology transfer deal between Alteogen and Tesaro, a subsidiary of GSK (GSK plc) in the United States, which had been expected to be worth trillions of won, actually came to 410 billion won.
Other biotech-related stocks also closed lower across the board as expectations for first-half technology transfer weakened. Peptron fell 13.12%, LigaChem Biosciences 12.12%, and ABL Bio 11.89%, while HLB (-3.65%) and Kolon TissueGene (-2.96%) were also weak.
EcoPro (-3.26%) and Rainbow Robotics (-1.72%) also fell. Conversely, Hyundai Movex jumped 19.00% on expectations for expansion of its Robotics business, and Sam Chun Dang Pharm rose 2.00% at the close.
In the KOSDAQ market, institutions sold 661 billion won and foreigners sold 265.4 billion won worth of shares in bulk. Individuals net bought 956.2 billion won.
Lee Jae-won, a researcher at Shinhan Investment & Securities, said, "The KOSPI index showed a standout rally compared with declines in the U.S., Japan, Taiwan, and Hong Kong markets, supported by strength in large-cap semiconductor and automobile (robot) stocks," adding, "The recently raised geopolitical conflict related to Greenland also did not stop the flow of artificial intelligence (AI) investment."