The stock market decline continued as investors grew cautious ahead of potential US tariff announcements and key earnings releases. The benchmark index dropped 40.87 points, or 1.27%, closing at 3,169.94. Analysts pointed to global trade tensions and profit-taking behavior as major contributors to the session’s losses.
Trading activity remained moderate with 375.19 million shares exchanged, totaling 11.39 trillion won ($8.2 billion). Market breadth tilted negative, with 686 decliners outnumbering 208 gainers. Institutional and foreign investors shifted strategies, turning into net sellers after multiple sessions of steady buying.
Institutions sold shares worth 413.94 billion won, and foreign investors offloaded 160.97 billion won. Retail investors, however, became net buyers, adding 511.44 billion won after three sessions of selling. This reversal reflected growing retail confidence despite institutional caution.
The stock market decline impacted major sectors, particularly technology, automotive, and steel. Samsung Electronics fell 2.65% to 66,000 won, while SK hynix dropped 1.47% to 268,500 won. Hyundai Motor lost 1.2% to 206,500 won, and HD Hyundai slipped 0.8% to 136,100 won. POSCO Holdings, the country’s top steelmaker, declined 1.22% to 323,000 won.
However, a few large-cap stocks recorded gains. LG Energy Solution rose 0.76% to 333,500 won, LG Chem climbed 0.7% to 289,000 won, and SK Telecom advanced 1.07% to 56,500 won. Korea Electric Power Corp. edged up 0.27% to 37,250 won. These gains offered limited support to the broader market.
Analysts noted that the stock market decline reflected investor anxiety about imminent US tariff measures and upcoming second-quarter earnings. Many expect market volatility to persist until there is more clarity on trade policies and corporate performance.
The Korean won gained slightly against the US dollar, closing at 1,387.80 per dollar, up 0.4 won from the prior session. Currency traders attributed the movement to shifting capital flows driven by trade uncertainty.
Looking ahead, experts warn that the stock market decline could continue if global trade disputes intensify or earnings disappoint. They recommend focusing on sectors with strong cash flows and considering defensive positions to navigate ongoing volatility.
This market pullback highlights how external shocks and profit-taking can influence investor behavior. Long-term investors may find opportunities by analyzing company fundamentals and valuation discrepancies during periods of uncertainty.
