Kospi slides 0.14% as Trump policies weigh on investor sentiment
Published: 20 Jan. 2025, 17:23
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- CHO YONG-JUN
- [email protected]
![A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,520.05 points on Jan. 12, down 3.50 points, or 0.14 percent, from the previous trading session. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/01/20/18d47756-2259-4a51-84ff-408a588308a8.jpg)
A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,520.05 points on Jan. 12, down 3.50 points, or 0.14 percent, from the previous trading session. [NEWS1]
Shares closed marginally lower for the second consecutive day Monday as the upcoming inauguration of new U.S. President Donald Trump weighed on investor sentiment in Korea.
The benchmark Kospi fell 3.5 points, or 0.14 percent, to close at 2,520.05, following a 0.16 percent drop on Friday.
Trade volume was moderate at 429.8 million shares worth 8.5 trillion won ($5.86 billion), with decliners outnumbering winners 488 to 387.
With Trump's inauguration, his campaign pledges of higher tariffs and other protectionist trade policies are set to take effect.
According to media reports, Trump promised to implement a host of executive actions on immigration and energy policy, and reverse or eliminate orders enacted by the Joe Biden administration.
In Seoul, foreign selling drove the daily decline.
Offshore investors dumped a net 414.6 billion won, remaining in a selling position for two sessions in a row.
On the other hand, institutions and individual investors purchased a net 65.4 billion won and 277.9 billion won, respectively.
Chips and auto shares finished in negative territory, while battery, shipbuilding and retail firms gained ground.
Samsung Electronics dropped 0.56 percent to 53,400 won, while SK hynix lost 1.17 percent to 212,000 won.
Hyundai Motor retreated 1.42 percent to 208,500 won and Hyundai Mobis tumbled 3.37 percent to 244,000 won.
LG Energy Solution vaulted 5.71 percent to 370,500 won and Posco Future M jumped 3.94 percent to 155,800 won.
Shipyards were among the winners, with HD Korea Shipbuilding & Offshore Engineering adding 0.21 percent to 244,000 won and Hanwha Ocean advancing 2.17 percent to 51,800 won, as shipbuilding is considered one of the sectors that would benefit from the second Trump administration.
Hyundai Department Store increased 1.37 percent to 48,150 won and Nongshim gained 0.88 percent to 344,000 won.
The local currency was trading at 1,451.7 won against the greenback at 3:30 p.m., down 6.6 won from the previous session.
Bond prices, which move inversely to yields, closed lower. Three-year government bond yields rose 3.7 basis points to 2.624 percent, while the return on the benchmark 10-year U.S. government bonds increased by 2.1 basis points to 4.626 percent.
BY CHO YONG-JUN, YONHAP [[email protected]]
with the Korea JoongAng Daily
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