Synopsis
On March 14, South Korea's stock market closed lower for the second consecutive session, influenced by U.S. President Trump's firm tariff policies. The local currency remained steady against the dollar, while trading activity showed a moderate volume.Key Takeaways
- South Korean stocks fell for the second day.
- Trump's tariff policies impact market sentiment.
- KOSPI closed at 2,566.36, down by 0.28%.
- Foreign investors sold a net 310.7 billion won.
- Chipmakers helped prevent further market losses.
Seoul, March 14 (NationPress) South Korea's stock market concluded lower for the second straight session on Friday, largely influenced by U.S. President Donald Trump's unwavering stance on his contentious tariff policies. The local currency held steady against the U.S. dollar from the prior session.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped by 7.28 points, or 0.28 percent, finishing at 2,566.36.
Trading activity was moderate, with a volume of 357.3 million shares valued at 9.8 trillion won ($6.74 billion). Interestingly, the number of gainers surpassed that of losers, standing at 508 to 356, according to reports from Yonhap news agency.
Foreign investors and institutions recorded a net sell-off amounting to 310.7 billion won, while retail investors countered with a net purchase of 209.4 billion won.
Meanwhile, Wall Street experienced a downturn after Trump reiterated his commitment to tariffs on steel, aluminum, and automobiles, amidst concerns of policy inconsistencies due to recent changes in tariff imposition on Canadian and Mexican products.
The S&P 500 declined by 1.39 percent, and the tech-focused Nasdaq saw a significant drop of 1.96 percent. The Dow Jones Industrial Average fell by 1.3 percent.
Market analysts anticipate that as the Constitutional Court approaches its ruling on President Yoon Suk Yeol's impeachment trial, the domestic stock market may witness volatile trading around the 2,600 mark next week.
"The local stock market has exhibited relative strength compared to the volatility observed in the U.S., yet investors should remain vigilant regarding the potential rise in political risks," advised Kim Ji-won, an analyst at KB Securities.
In Seoul, shares of battery manufacturers and biopharmaceutical companies faced losses. LG Energy Solution declined by 4.11 percent to 326,500 won, while Samsung Biologics dropped 0.19 percent to 1,051,000 won.
Shares in the energy sector also retreated, with leading refiner SK Innovation plummeting 5.17 percent to 132,000 won and LG Chem falling 4.74 percent to 231,000 won.
Additionally, shares in the steel and automotive sectors, which are vulnerable to U.S. tariff risks, faced declines. Top steel producer POSCO Holdings fell 2.56 percent to 304,500 won, while leading automaker Hyundai Motor dropped 1.24 percent to 198,500 won.
However, chipmakers helped mitigate further losses in the market. SK hynix rose by 2.4 percent to 204,500 won, while Samsung Electronics remained steady at 54,700 won.
The local currency was trading at 1,453.8 won against the U.S. dollar at 3:30 p.m., unchanged from the previous day.
Bond prices, which have an inverse relationship with yields, decreased. The yield on three-year Treasurys rose by 2.6 basis points to 2.596 percent, and the yield on the benchmark five-year government bonds increased by 1.5 basis points to conclude at 2.640 percent.
