On October 14, the KOSPI reversed early gains and ended lower as renewed concerns over escalating U.S.-China trade tensions offset its record-breaking start to the session.
The KOSPI closed at 3,561.81, down 22.74 points (0.63%) from the previous session. The KOSPI opened 19.57 points higher at 3,604.12, surpassing the previous intraday record of 3,617.86 set on October 10. It climbed as high as 3,646.77 around 9:32 a.m. before paring gains and fluctuating near the 3,620 level. By 12:45 p.m., the index dropped sharply to an intraday low of 3,535.52.
The downturn was attributed to renewed worries that the U.S.-China trade conflict could intensify.
Tensions escalated after China announced sanctions on five U.S. subsidiaries of Hanwha Ocean (042660), amid ongoing disputes between the two countries over port entry fees in the maritime and shipbuilding sectors. The move dashed earlier hopes that relations between Washington and Beijing might be improving.
Analysts at Daishin Securities, including Lee Kyung-min and Jung Hae-chang, said, “Profit-taking, combined with the revival of U.S.-China trade tensions, prompted the market’s shift into negative territory.”
China’s Ministry of Commerce defended the legality of its rare earth export restrictions, stating, “If there is a fight, we will fight to the end; but if there is dialogue, our door remains wide open.”
Lee added, “With Korean companies now directly targeted by retaliatory measures, the overall decline in the KOSPI deepened. The won also weakened, with the dollar-won exchange rate surging to the 1,430 level. Meanwhile, gold prices continued to rise, climbing beyond 4,100 dollars per ounce and reaching nearly 4,170 dollars during intraday trading.”
Other Asian markets, which had shown relative strength in recent weeks, also ended mostly lower.
Japan’s Nikkei 225 plunged 2.58 percent to 46,847.32, dragged down by renewed U.S.-China tensions and political instability following the collapse of the Liberal Democratic Party–Komeito coalition after 26 years. Taiwan’s TAIEX lost 0.48 percent, while China’s Shanghai Composite Index and Shenzhen Component Index were down 0.66 percent and 1.82 percent, respectively, as of 3:38 p.m. Hong Kong’s Hang Seng Index fell 2.00 percent.
In the Seoul foreign exchange market, the won closed at 1,431.0 per dollar, up 5.2 won from the previous session.
On the main bourse, foreign investors and retail traders were net buyers of 485.7 billion won and 70.4 billion won, respectively, while institutions sold a net 628.6 billion won.
In the KOSPI 200 futures market, foreigners and individuals were net sellers of 428.7 billion won and 61.2 billion won, respectively, while institutions purchased 516.9 billion won worth of contracts.
Samsung Electronics (005930) fell 1.82 percent to 91,600 won. Earlier in the day, the stock had surged to 97,500 won, surpassing its all-time high of 96,800 won set on January 11, 2021, after the company reported a third-quarter operating profit of 12.1 trillion won, 17.4 percent above market expectations. However, profit-taking and renewed trade tensions led the stock to close lower. SK Hynix (000660) also declined 0.84 percent to 411,500 won.
Hanwha Ocean (042660) tumbled 5.76 percent following reports of Chinese sanctions on its U.S. subsidiaries. In contrast, LG Energy Solution (373220) jumped 6.94 percent after announcing the resumption of personnel dispatch to its battery joint venture with Hyundai Motor Group in Georgia, the HL-GA Battery Company.
Among other large-cap stocks, Samsung Life Insurance (032830) gained 6.30 percent, Hyundai Motor (005380) rose 2.06 percent, Kia (000270) advanced 1.38 percent, and Samsung Biologics (207940) added 0.69 percent. Meanwhile, Hanwha Aerospace (012450) declined 6.04 percent, HD Hyundai Heavy Industries (329180) dropped 4.06 percent, Shinhan Financial Group (055550) fell 2.84 percent, Doosan Enerbility (034020) slipped 2.32 percent, NAVER (035420) lost 1.71 percent, and Celltrion (068270) decreased 0.70 percent.
By sector, metals rose 5.96 percent, utilities gained 4.36 percent, insurance climbed 2.19 percent, transportation and storage added 1.03 percent, and non-metal materials increased 0.48 percent. On the other hand, entertainment and culture fell 2.98 percent, medical and precision instruments declined 2.65 percent, transportation equipment and components dropped 2.17 percent, machinery and equipment slipped 1.90 percent, and IT services decreased 1.77 percent.
The KOSDAQ finished at 847.96, down 12.53 points (1.46%). The index opened 4.88 points higher at 865.37, but reversed into negative territory later in the session.
On the KOSDAQ, foreign investors and institutions sold 121.2 billion won and 117.9 billion won, respectively, while individuals bought 231.5 billion won.
Among major KOSDAQ stocks, EcoPro BM (247540) rose 5.01 percent, EcoPro (086520) advanced 3.70 percent, and Leeno Industrial (058470) gained 1.24 percent. In contrast, Peptone (087010) dropped 4.97 percent, PharmaResearch (214450) fell 4.47 percent, HLB (028300) declined 3.30 percent, LigaChem Biosciences (141080) lost 3.10 percent, and Rainbow Robotics (277810) slipped 2.03 percent.
Total trading value was 18.88 trillion won on the KOSPI and 11.07 trillion won on the KOSDAQ.
On October 14, the KOSPI reversed early gains and ended lower as renewed concerns over escalating U.S.-China trade tensions offset its record-breaking start to the session.
The KOSPI closed at 3,561.81, down 22.74 points (0.63%) from the previous session. The KOSPI opened 19.57 points higher at 3,604.12, surpassing the previous intraday record of 3,617.86 set on October 10. It climbed as high as 3,646.77 around 9:32 a.m. before paring gains and fluctuating near the 3,620 level. By 12:45 p.m., the index dropped sharply to an intraday low of 3,535.52.
The downturn was attributed to renewed worries that the U.S.-China trade conflict could intensify.
Tensions escalated after China announced sanctions on five U.S. subsidiaries of Hanwha Ocean (042660), amid ongoing disputes between the two countries over port entry fees in the maritime and shipbuilding sectors. The move dashed earlier hopes that relations between Washington and Beijing might be improving.
Analysts at Daishin Securities, including Lee Kyung-min and Jung Hae-chang, said, “Profit-taking, combined with the revival of U.S.-China trade tensions, prompted the market’s shift into negative territory.”
China’s Ministry of Commerce defended the legality of its rare earth export restrictions, stating, “If there is a fight, we will fight to the end; but if there is dialogue, our door remains wide open.”
Lee added, “With Korean companies now directly targeted by retaliatory measures, the overall decline in the KOSPI deepened. The won also weakened, with the dollar-won exchange rate surging to the 1,430 level. Meanwhile, gold prices continued to rise, climbing beyond 4,100 dollars per ounce and reaching nearly 4,170 dollars during intraday trading.”
Other Asian markets, which had shown relative strength in recent weeks, also ended mostly lower.
Japan’s Nikkei 225 plunged 2.58 percent to 46,847.32, dragged down by renewed U.S.-China tensions and political instability following the collapse of the Liberal Democratic Party–Komeito coalition after 26 years. Taiwan’s TAIEX lost 0.48 percent, while China’s Shanghai Composite Index and Shenzhen Component Index were down 0.66 percent and 1.82 percent, respectively, as of 3:38 p.m. Hong Kong’s Hang Seng Index fell 2.00 percent.
In the Seoul foreign exchange market, the won closed at 1,431.0 per dollar, up 5.2 won from the previous session.
On the main bourse, foreign investors and retail traders were net buyers of 485.7 billion won and 70.4 billion won, respectively, while institutions sold a net 628.6 billion won.
In the KOSPI 200 futures market, foreigners and individuals were net sellers of 428.7 billion won and 61.2 billion won, respectively, while institutions purchased 516.9 billion won worth of contracts.
Samsung Electronics (005930) fell 1.82 percent to 91,600 won. Earlier in the day, the stock had surged to 97,500 won, surpassing its all-time high of 96,800 won set on January 11, 2021, after the company reported a third-quarter operating profit of 12.1 trillion won, 17.4 percent above market expectations. However, profit-taking and renewed trade tensions led the stock to close lower. SK Hynix (000660) also declined 0.84 percent to 411,500 won.
Hanwha Ocean (042660) tumbled 5.76 percent following reports of Chinese sanctions on its U.S. subsidiaries. In contrast, LG Energy Solution (373220) jumped 6.94 percent after announcing the resumption of personnel dispatch to its battery joint venture with Hyundai Motor Group in Georgia, the HL-GA Battery Company.
Among other large-cap stocks, Samsung Life Insurance (032830) gained 6.30 percent, Hyundai Motor (005380) rose 2.06 percent, Kia (000270) advanced 1.38 percent, and Samsung Biologics (207940) added 0.69 percent. Meanwhile, Hanwha Aerospace (012450) declined 6.04 percent, HD Hyundai Heavy Industries (329180) dropped 4.06 percent, Shinhan Financial Group (055550) fell 2.84 percent, Doosan Enerbility (034020) slipped 2.32 percent, NAVER (035420) lost 1.71 percent, and Celltrion (068270) decreased 0.70 percent.
By sector, metals rose 5.96 percent, utilities gained 4.36 percent, insurance climbed 2.19 percent, transportation and storage added 1.03 percent, and non-metal materials increased 0.48 percent. On the other hand, entertainment and culture fell 2.98 percent, medical and precision instruments declined 2.65 percent, transportation equipment and components dropped 2.17 percent, machinery and equipment slipped 1.90 percent, and IT services decreased 1.77 percent.
The KOSDAQ finished at 847.96, down 12.53 points (1.46%). The index opened 4.88 points higher at 865.37, but reversed into negative territory later in the session.
On the KOSDAQ, foreign investors and institutions sold 121.2 billion won and 117.9 billion won, respectively, while individuals bought 231.5 billion won.
Among major KOSDAQ stocks, EcoPro BM (247540) rose 5.01 percent, EcoPro (086520) advanced 3.70 percent, and Leeno Industrial (058470) gained 1.24 percent. In contrast, Peptone (087010) dropped 4.97 percent, PharmaResearch (214450) fell 4.47 percent, HLB (028300) declined 3.30 percent, LigaChem Biosciences (141080) lost 3.10 percent, and Rainbow Robotics (277810) slipped 2.03 percent.
Total trading value was 18.88 trillion won on the KOSPI and 11.07 trillion won on the KOSDAQ.