Samsung Electronics shares also ease… Weak US equities add pressure from a strong dollar [Today’s Market Preview]

The KOSPI, which has been repeatedly rewriting record highs, is now within sight of the 4,700 mark. Still, with Wall Street weakening overnight, Korea’s stock market is expected to take a breather.

According to the Korea Exchange on the 14th, the KOSPI extended its streak of record closes to eight consecutive sessions through the previous day. It finished at 4,692.64, up 1.47% on the day. Retail and foreign investors net sold 712.5 billion won and 279.3 billion won, respectively, while institutions net bought 788.1 billion won, lifting the index.

Samsung Electronics and SK hynix fell 0.86% and 1.47%, respectively, but defense and auto names such as Hanwha Aerospace (5.78%) and Hyundai Motor (10.68%) surged, contributing to the index’s rise. The KOSDAQ closed at 948.98, down 0.09%.

US stocks were weaker on the 13th (local time). The Dow Jones Industrial Average fell 0.8%, and the S&P 500 slipped 0.19%. The Nasdaq Composite edged down 0.1%.

JPMorgan Chase, a bellwether US bank stock, plunged 4.19%. Although it posted fourth-quarter results for last year that beat market expectations, management warned that the Trump administration’s policies could weigh on the firm’s performance as well as the broader economy. Card network operator Visa slid 4.46%, and Mastercard fell 3.76%.

JPMorgan Chase CFO Jeremy Barnum said on the earnings conference call that the Donald Trump administration’s plan to cap credit-card interest rates would have a negative impact on markets and consumers, adding that “all options are on the table” and signaling legal action if the policy is pushed through.

The US Consumer Price Index (CPI) for December rose 2.7% year on year, easing market concerns, but it did not change the broad expectation that the US central bank (Fed) will hold rates at the Federal Open Market Committee (FOMC) meeting on the 27th–28th.

There is also a view that Korea’s market will enter a consolidation phase. Micron, which has a major influence on Korean chipmakers, also fell 2.2%. Han Ji-young, an analyst at Kiwoom Securities, said, “Today, the domestic market is expected to open lower amid external headwinds such as lingering US inflation jitters, geopolitical uncertainty stemming from Iran, and the impact of the won-dollar exchange rate rebounding into the 1,470-won range.”

She added, “As fatigue has built up from the consecutive rally, we believe a near-term pullback from the recent concentration in sharp gainers could emerge,” and advised that “an alternative is to resume staggered buying of semiconductors, the existing market leaders, or to take interest in laggard sectors since the start of the year—such as hotels, leisure, cosmetics and distribution—which benefit from a weaker won.”

Reporter Maeng Jin-gyu maeng@hankyung.com