On the 9th, the KOSPI closed slightly lower. The index started strong on news of a trade deal between the United States and the United Kingdom, but as the strong dollar raised concerns that trade negotiations with countries other than the UK would be challenging, investor sentiment toward risk assets weakened.
The KOSPI index closed at 2,577.27, down 2.21 points (0.09%) from the previous session. The highest price was 2,589.58, and the lowest was 2,571.20. The transaction value was 7.7333 trillion won, which is a decline of over 2.5 trillion won compared to the previous day's 10.27 trillion won.
The index started the day at 2,587.93, up 8.45 points (0.33%) from the previous session. The signing of a trade agreement framework between the United States and the United Kingdom was a positive factor, marking the first trade deal since the tariffs were imposed on April 2. The three major indices of the New York Stock Exchange also rose overnight.
However, expectations for negotiations led to a stronger dollar, which became a negative factor for the KOSPI. In particular, as the exchange rate for the won against the dollar rose to 1,414 won in the morning, foreign investors turned to 'selling.' After the exchange rate fell to 1,400 won and foreigners returned to net buying, the index barely regained equilibrium.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, noted, "The negotiations that will have a greater impact in the future will be the high-level talks between the U.S. and China taking place over the weekend," adding, "Although the KOSPI index showed gains for three consecutive trading days, caution and profit-taking were also seen ahead of the weekend."
By investor type, institutions including financial investments led the index decline as they engaged in 'selling.' They net sold 183.7 billion won worth of large-cap KOSPI stocks. Foreign investors turned to net buying of 45.4 billion won, and individuals also net bought 76.6 billion won, but this was not enough to prevent the index decline.
In the midst of this, the KOSPI market shifted to a stock market driven by individual stock movements based on earnings season results. The news that the UK secured an automotive export quota in negotiations with the U.S. helped boost automobile stocks like Hyundai Motor and Kia, but the gains were not significant.
Out of a total of 936 KOSPI stocks, only 339 stocks rose. Netmarble recorded a significant performance with a 1,243.5% increase in operating profit compared to the previous year, and following APR's strong results the previous day, Kolmar Korea also reported strong results, leading to a rise in K-beauty stocks.
The prices of the remaining 551 stocks fell. Both BGF Retail and GS Retail showed weakness due to declining operating profits. Among the top 10 stocks by market capitalization on the KOSPI, Samsung Electronics and SK hynix showed mixed results, with one rising and the other falling.
Most of the stocks that rose in the KOSPI that day were political theme stocks. As the possibility of a single candidate being chosen for the People Power Party presidential nomination decreased, Pyung Hwa Holdings and Pyunghwa Industrial, considered to be linked to candidate Kim Moon-soo, continued to rise, gaining 14.85% and 13.63%, respectively.
KYUNGBANG, considered a theme stock linked to Lee Jae-myung, the Democratic Party of Korea presidential candidate, also saw its stock price rise by over 8%. This was due to news that the son of candidate Lee works at the private equity firm HYK Partners, in which KYUNGBANG is a major investor. Other AI and implant-related stocks also rose as theme stocks.
The KOSDAQ index closed at 722.52, down 7.07 points (0.97%). Similar to the KOSPI index, it started higher at 731.01, up 1.42 points (0.19%) from the previous session but reversed course and fell. Foreign investors net sold 301.3 billion won worth of stocks, leading to the index decline.
By stock, out of a total of 1,713 stocks, 541 rose and 1,064 fell. There were 7 stocks at the upper limit and 1 at the lower limit. The stocks that hit the upper limit included SLS Bio and PolarisAI Pharma, most of which were linked to Lee Jae-myung's implant and AI policies.
In the KOSDAQ market, most of the top 10 stocks fell. The stock price of ECOPRO BM dropped nearly 6% on news of declining market share among domestic battery manufacturers in the electric vehicle battery market. Other stocks like Alteogen and Rainbow Robotics also recorded losses, while HLB and PharmaResearch were the only ones that rose.