On July 31, the KOSPI declined falling below the 3,250 level and ending a seven-session winning streak, despite the announcement of a tariff agreement between South Korea and the United States.
The KOSPI closed at 3,245.44, down 9.03 points or 0.28% from the previous session. The index opened 21.31 points or 0.65% higher at 3,275.78 and rose to a fresh yearly high of 3,288.26 in early trading, but quickly pared gains and turned lower.
As of 3:30 p.m., the Korean won was trading at 1,387.0 per U.S. dollar, up 3.9 won from the previous day, according to the Seoul foreign exchange market.
Institutional investors offloaded a net 705.2 billion won worth of shares on the main bourse, dragging the index down. Retail investors and foreign investors bought a net 223.5 billion won and 344.4 billion won, respectively. However, foreigners were net sellers of 721.7 billion won in the KOSPI 200 futures market.
The local stock market initially rose on news that South Korea and the U.S. had reached an agreement under which Korea would invest 350 billion dollars (approximately 487 trillion won) in the U.S., and the U.S. would lower reciprocal tariffs on Korean exports from 25% to 15%.
However, as expectations for the agreement had already been largely priced in during the six-day rally leading up to the announcement, profit-taking emerged and trimmed earlier gains.
Investor sentiment was also dampened by concerns over the fiscal burden, as Korea’s investment volume relative to GDP was higher than that of other major economies like Japan. Additionally, steel products were excluded from the tariff cut list, and Korea, which had previously exported automobiles to the U.S. tariff-free, will now be subject to a 2.5% tariff, equal to the rate imposed on Japan and the European Union—triggering some disappointment-driven selling.
Lee Woong-chan, an analyst at iM Investment & Securities, commented, “The stock market had already priced in much of the optimism, with the index gaining nearly 2% this week. As a result, the actual news failed to trigger a strong response.” He added, “Tariff implementation begins in August, and we are concerned about inflationary pressure and a decline in real consumption.”
Overnight, the U.S. Federal Reserve held its benchmark interest rate steady. Fed Chair Jerome Powell indicated a prolonged wait-and-see approach regarding trade policy, contributing to weakness in U.S. equity markets and likely influencing domestic selling.
Among large-cap stocks, Samsung Electronics (005930) declined 1.65% as its semiconductor division reported its lowest quarterly operating profit in six quarters. LG Energy Solution (373220) fell 2.67%, Samsung Biologics (207940) dropped 2.82%, and KB Financial Group (105560) lost 1.68%.
Automakers Hyundai Motor (005380) and Kia (000270) plunged 4.48% and 7.34%, respectively. Steelmakers HiSteel (071090) and Husteel (005010) fell 12.63% and 4.37%, respectively, reflecting disappointment over the tariff agreement.
Conversely, SK hynix (000660) rose 3.80%, reclaiming the 270,000-won level for the first time in eight sessions. Shipbuilders, seen as beneficiaries of the agreement, also advanced, with Hanwha Ocean (042660) surging 13.43% and HD Hyundai Heavy Industries (329180) gaining 4.14%.
Hanwha Aerospace (012450), which surpassed the 1 million won mark during the session to briefly become a so-called “emperor stock,” closed below that level, ending up 1.94%.
By sector, retail (-2.50%), chemicals (-1.21%), and pharmaceuticals (-1.81%) declined, while entertainment & culture (2.53%) and construction (1.27%) posted gains.
The KOSDAQ finished up 1.57 points or 0.20% at 805.24. It opened 2.54 points or 0.32% higher at 806.21, dipped briefly into negative territory, and then rebounded.
In the KOSDAQ market, retail and foreign investors were net buyers of 9.6 billion won and 27.1 billion won, respectively, while institutions sold a net 28.2 billion won.
Among notable gainers were Alteogen (196170) up 0.55%, Peptron (087010) up 1.91%, PharmaResearch (214450) up 1.27%, and Hugel (145020) up 1.51%.
Meanwhile, battery-related stocks such as Ecopro BM (247540) and Ecopro (086520) dropped 2.88% and 3.33%, respectively. HLB (028300) edged down 0.10%, and Rainbow Robotics (277810) lost 1.42%.
Total trading value on the KOSPI reached 16.441 trillion won, up from 12.969 trillion won the previous session. Trading volume on the KOSDAQ remained above the 5 trillion won mark at 5.030 trillion won, slightly down from the prior day’s 5.219 trillion won.
On July 31, the KOSPI declined falling below the 3,250 level and ending a seven-session winning streak, despite the announcement of a tariff agreement between South Korea and the United States.
The KOSPI closed at 3,245.44, down 9.03 points or 0.28% from the previous session. The index opened 21.31 points or 0.65% higher at 3,275.78 and rose to a fresh yearly high of 3,288.26 in early trading, but quickly pared gains and turned lower.
As of 3:30 p.m., the Korean won was trading at 1,387.0 per U.S. dollar, up 3.9 won from the previous day, according to the Seoul foreign exchange market.
Institutional investors offloaded a net 705.2 billion won worth of shares on the main bourse, dragging the index down. Retail investors and foreign investors bought a net 223.5 billion won and 344.4 billion won, respectively. However, foreigners were net sellers of 721.7 billion won in the KOSPI 200 futures market.
The local stock market initially rose on news that South Korea and the U.S. had reached an agreement under which Korea would invest 350 billion dollars (approximately 487 trillion won) in the U.S., and the U.S. would lower reciprocal tariffs on Korean exports from 25% to 15%.
However, as expectations for the agreement had already been largely priced in during the six-day rally leading up to the announcement, profit-taking emerged and trimmed earlier gains.
Investor sentiment was also dampened by concerns over the fiscal burden, as Korea’s investment volume relative to GDP was higher than that of other major economies like Japan. Additionally, steel products were excluded from the tariff cut list, and Korea, which had previously exported automobiles to the U.S. tariff-free, will now be subject to a 2.5% tariff, equal to the rate imposed on Japan and the European Union—triggering some disappointment-driven selling.
Lee Woong-chan, an analyst at iM Investment & Securities, commented, “The stock market had already priced in much of the optimism, with the index gaining nearly 2% this week. As a result, the actual news failed to trigger a strong response.” He added, “Tariff implementation begins in August, and we are concerned about inflationary pressure and a decline in real consumption.”
Overnight, the U.S. Federal Reserve held its benchmark interest rate steady. Fed Chair Jerome Powell indicated a prolonged wait-and-see approach regarding trade policy, contributing to weakness in U.S. equity markets and likely influencing domestic selling.
Among large-cap stocks, Samsung Electronics (005930) declined 1.65% as its semiconductor division reported its lowest quarterly operating profit in six quarters. LG Energy Solution (373220) fell 2.67%, Samsung Biologics (207940) dropped 2.82%, and KB Financial Group (105560) lost 1.68%.
Automakers Hyundai Motor (005380) and Kia (000270) plunged 4.48% and 7.34%, respectively. Steelmakers HiSteel (071090) and Husteel (005010) fell 12.63% and 4.37%, respectively, reflecting disappointment over the tariff agreement.
Conversely, SK hynix (000660) rose 3.80%, reclaiming the 270,000-won level for the first time in eight sessions. Shipbuilders, seen as beneficiaries of the agreement, also advanced, with Hanwha Ocean (042660) surging 13.43% and HD Hyundai Heavy Industries (329180) gaining 4.14%.
Hanwha Aerospace (012450), which surpassed the 1 million won mark during the session to briefly become a so-called “emperor stock,” closed below that level, ending up 1.94%.
By sector, retail (-2.50%), chemicals (-1.21%), and pharmaceuticals (-1.81%) declined, while entertainment & culture (2.53%) and construction (1.27%) posted gains.
The KOSDAQ finished up 1.57 points or 0.20% at 805.24. It opened 2.54 points or 0.32% higher at 806.21, dipped briefly into negative territory, and then rebounded.
In the KOSDAQ market, retail and foreign investors were net buyers of 9.6 billion won and 27.1 billion won, respectively, while institutions sold a net 28.2 billion won.
Among notable gainers were Alteogen (196170) up 0.55%, Peptron (087010) up 1.91%, PharmaResearch (214450) up 1.27%, and Hugel (145020) up 1.51%.
Meanwhile, battery-related stocks such as Ecopro BM (247540) and Ecopro (086520) dropped 2.88% and 3.33%, respectively. HLB (028300) edged down 0.10%, and Rainbow Robotics (277810) lost 1.42%.
Total trading value on the KOSPI reached 16.441 trillion won, up from 12.969 trillion won the previous session. Trading volume on the KOSDAQ remained above the 5 trillion won mark at 5.030 trillion won, slightly down from the prior day’s 5.219 trillion won.