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Kospi slips 1.3% on reports of Trump plan to roll back EV credits

Published: 17 Dec. 2024, 17:38

KIM JU-YEON
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,456.81 points on Dec. 17, down 1.29 percent, or 32.16 points, from the previous trading session. [NEWS1]

Shares dipped nearly 1.3 percent Tuesday on big losses by tech and battery stocks sparked by a media report on the incoming Donald Trump administration's push to roll back tax credits for the electric vehicle (EV) industry. The won weakened against the dollar.

The Kospi fell 32.16 points, or 1.29 percent, to close at 2,456.81.

Trade volume was moderate at 547.9 million shares worth 9.03 trillion won ($6.3 billion), with losers surpassing winners 493 to 384.

Foreigners dragged the Kospi down by dumping 712.5 billion won worth of local shares, while retail investors and institutions purchased 465.5 billion won and 151.9 billion won, respectively.

Overnight, Wall Street closed mixed as investors were paying attention to the U.S. Federal Reserve's forthcoming rate decision in Washington on Wednesday.

The Fed is widely expected to cut its key rate for the third consecutive time.

Analysts said battery shares lost big in particular on news that U.S. President-elect Donald Trump's transition team will push to cut off support for EVs and impose tariffs on battery materials.

Battery maker LG Energy Solution plunged 3.89 percent to 382,500 won, and smaller rival Samsung SDI shot down 6.08 percent. Posco Future M plummeted 8.24 percent to 152,600 won.

Samsung Electronics slid 2.52 percent to 54,200 won, while chipmaking rival SK hynix jumped 2.62 percent to 184,000 won.

Automaker Hyundai Motor also declined 2.13 percent to 206,500 won, and chemical producer LG Chem dipped 4.1 percent.

IT shares were also weak.

Internet portal operator Naver lost 2.1 percent to 209,500 won, and Kakao, the operator of the country's dominant mobile messenger, shed 2.5 percent to 42,850 won.

The local currency was trading at 1,438.9 won against the dollar at 3:30 p.m., up 3.9 won from the previous session.

Bond prices, which move inversely to yields, closed lower. Three-year government bond yields increased by 7 basis points to 2.622 percent, while the return on the benchmark 10-year U.S. government bonds rose by 0.9 basis points to 4.401 percent.

BY KIM JU-YEON, YONHAP [[email protected]]