Trump Relief... KOSPI and KOSDAQ Slightly Firm in Early Trading

Samba and Naver Rise,
Samsung Electronics Slightly Down

On the 22nd, the KOSPI index is trading around the 2,530 level. Photo by Yoon Dong-joo

U.S. President Donald Trump did not specifically mention the universal tariff policy he emphasized during his presidential campaign on his first day in office, easing concerns in both the U.S. and domestic stock markets.

As of 9:22 a.m. on the 22nd, the KOSPI recorded 2,533.89, up 0.63% from the previous day. After a slightly firm start, it has mostly maintained this level. In the KOSPI market, institutions net bought stocks worth 125.3 billion KRW, while individuals and foreigners net sold 120.6 billion KRW and 15.5 billion KRW, respectively.

Most of the top market capitalization stocks in KOSPI showed gains. Samsung Biologics had the largest increase at 3.20%. Following were NAVER (1.22%), Celltrion (0.78%), Hyundai Motor (0.73%), and LG Energy Solution (0.56%). Samsung Electronics (-0.37%) and HD Hyundai Heavy Industries (-0.92%) declined.

By sector, machinery and equipment (3.85%), pharmaceuticals (2.06%), general services (1.21%), and textiles and apparel (0.80%) showed strength. Conversely, insurance (-0.90%), paper and wood (-0.55%), transportation equipment and parts (-0.45%), and medical and precision instruments (-0.33%) showed slight weakness.

At the same time, the KOSDAQ also rose 0.62% to 730.62. In the KOSDAQ market, foreigners and institutions net bought stocks worth 19.6 billion KRW and 14.4 billion KRW, respectively. Individuals sold 32.3 billion KRW.

Most of the top market capitalization stocks also rose. Alteogen led with a 5.85% increase. Following were Samchundang Pharmaceutical (3.73%), Ligand Chem Bio (2.00%), EcoPro BM (1.67%), EcoPro (1.64%), and Hugel (1.01%). Rino Industrial and Classys maintained their previous day’s prices.

In KOSDAQ, the general services sector showed the largest gain at 2.72%. Pharmaceuticals (0.75%), transportation equipment and parts (0.67%), and metals (0.64%) also rose. Publishing and media reproduction (-0.82%), entertainment and culture (-0.81%), non-metallic minerals (-0.66%), and distribution (-0.66%) showed slight declines.

President Trump signed several executive orders on his first day in office, but the comprehensive tariffs promised during the election campaign were not included. Trump stated the day before, "We are considering imposing a 25% tariff on Mexico and Canada starting next month," but added, "The 'universal tariff' is not ready yet." Previously, during the presidential campaign, Trump had pledged to impose a universal tariff of 10-20% on all imports and an additional 60% tariff on Chinese products. This situation led to a weaker U.S. dollar, causing the won-dollar exchange rate to fall to the 1,430 KRW level for the first time in about a month. The 10-year U.S. Treasury yield also traded below 4.6%, easing inflation concerns. All three major U.S. indices closed higher that day.

Han Ji-young, a researcher at Kiwoom Securities, said, "The expectation of tariff restrictions by Trump, along with the Nasdaq’s strength and declines in the dollar and interest rates, is expected to lead to a positive start. From a sector perspective, the anticipation of Trump’s investment in artificial intelligence (AI) infrastructure and the revitalization of the space industry in the U.S. is expected to create a favorable supply and demand environment for domestic related stocks, including AI and aerospace stocks."

This content was produced with the assistance of AI translation services.