KOSPI declines amid concerns over tariffs and tax increases… KOSDAQ also falls
Summary
- It was reported that both the KOSPI and KOSDAQ are declining together amid investor caution over tariffs and tax increases.
- The prevalence of net selling by foreigners and institutions is cited as a factor in the drop in indices, with semiconductor and pharmaceutical stocks particularly weak.
- President Trump's announcement of tariffs on semiconductors and pharmaceuticals is said to be negatively affecting investor sentiment.
Semiconductor and pharmaceutical stocks simultaneously weak
Impact of Trump's announced tariffs
The KOSPI index is showing a decline in early trading on the 6th due to selling from foreign investors and institutions. Investor caution regarding tariffs and tax hikes remains strong.
As of 9:11 a.m., the KOSPI index stands at 3,184.62, down 13.38 points (0.42%) from the previous trading day. The index started the day down 0.5% and has maintained this downward trend.
On the KOSPI, foreign investors and institutions are net sellers by ₩91.7 billion and ₩40.7 billion respectively, while individuals are net buyers by ₩131.3 billion.
The U.S. stock market also ended lower overnight. On the 5th (local time), the Dow Jones Industrial Average fell 0.14%, while the S&P 500 Index and NASDAQ Composite Index dropped 0.49% and 0.65%, respectively. Investor sentiment weakened on news that the U.S. service sector worsened due to the impact of tariff policies under the Donald Trump administration.
Among large-cap stocks on the KOSPI, LG Energy Solution, Samsung Biologics, Hanwha Aerospace, Hyundai Motor Company, HD Hyundai Heavy Industries, Celltrion, Naver, and Hanwha Ocean are falling, while KB Financial Group, Doosan Enerbility, and Kia Corporation are rising.
Samsung Electronics and SK Hynix are plunging by over 1%. Pharmaceutical stocks, including Samsung Biologics, Celltrion, and Yuhan Corporation, are also showing declines of around 1%. This is interpreted as the result of President Trump’s announcement of planned tariffs on semiconductors and pharmaceuticals the previous day.
At the same time, the KOSDAQ index is at 795.17, down 3.43 points (0.43%) from the previous trading day. The index started the day down 0.27% and has maintained a decline of around 0.5%.
On the KOSDAQ, foreign investors and institutions have net sold ₩14.6 billion and ₩2.7 billion, respectively, while individuals are net sellers by ₩16.5 billion.
Among large-cap stocks on the KOSDAQ, Alteogen, Peptron, HLB, PharmaResearch, Rainbow Robotics, Samchundang Pharm, ABL Bio, Hugel, Classys, and Leeno Industrial are falling, while EcoPro BM, EcoPro, and LIG Chem Bio are rising.
In the Seoul foreign exchange market, the KRW-USD exchange rate opened at ₩1,387.30, down ₩1 from the previous session.
Go Jeong-sam, Hankyung.com reporter jsk@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
