After soaring over 3% for two consecutive days, the Korea Composite Stock Price Index (KOSPI) has entered a consolidation phase. It opened lower on the 30th and continues to show weakness during the trading session. This is due to profit-taking by foreign investors and renewed uncertainty over tariffs from U.S. President Donald Trump.
According to the Korea Exchange, as of 11 a.m. on this day, the KOSPI index had dropped by 11.78 points (0.43%) to 2,708.86 compared to the previous trading day. The index started at 2,713.24, down 7.40 points (0.27%) from the previous close, and the decline is widening.
Foreign investors are leading the index decline by engaging in selling. They are net selling over 400 billion won. Institutional investors are also net selling shares worth 36.3 billion won. Individual investors are net buying 431.2 billion won worth of shares, but this is insufficient to prevent the index from falling.
There is an analysis suggesting that the pressure from the recent short-term surge in the domestic stock market is leading to profit-taking. Additionally, the restoration of the effectiveness of the Trump administration's tariff policy within a day has contributed to the increased uncertainty over tariffs, which has become a negative factor.
On the 29th (local time), the U.S. Court of Appeals accepted the Trump administration's request to suspend the effect of the judgment against the first instance ruling and decided to temporarily restore the tariff's effectiveness while the appeal is underway. This came just a day after the mutual tariff invalidation ruling.
Han Ji-young, an analyst at Kiwoom Securities, noted, "Considering that the appeal ruling and the final decision by the Supreme Court will take about a year, the dynamics between President Trump and the Federal Trade Court have entered a phase of time competition."
Most of the top stocks by market capitalization on the KOSPI are experiencing declines. SK hynix is down more than 2%, while shares of LG Energy Solution, Hanwha Aerospace, and Doosan Enerbility are also weak.
On the second day of early voting for the presidential election, the stocks of securities and holding companies also showed strength. This is driven by the buying spree in securities and holding companies based on the campaign promise of Lee Jae-myung, the presidential candidate of the Democratic Party of Korea, to achieve a "KOSPI of 5,000."
At the same time, the KOSDAQ index recorded an increase of 0.37 points (0.05%) to 736.66. The index started at 735.26, down 1.03 points (0.14%) from the previous close, but has since turned to a strong holding pattern. Despite the selling spree from foreign and institutional investors, individuals are net buying 90.8 billion won worth of shares.
By stock, biotech shares led by Alteogen, along with Peptron and PharmaResearch, have shown strength thanks to the interest rate cuts. In contrast, shares of ECOPRO BM, Ecopro, and Rainbow Robotics are declining.