KOSPI Recovers to '3000 Level'... "US Stimulus Package and Interest Rate Stability Effects"

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[Asia Economy Reporter Ji-hwan Park] Thanks to foreign investors' purchases worth over 200 billion won on the 11th, the KOSPI successfully recovered the 3,000-point level. The KOSPI rose more than 1.4% in early trading to regain the 3,000 mark, and the KOSDAQ also approached the 900 level.

Despite the extreme volatility on 'Four Witching Day' (Quadruple Witching Day), it is analyzed that the passage of additional US stimulus measures and stable interest rates had a greater impact on investor sentiment.

As of 10:22 a.m. that day, the KOSPI stood at 3,000.71, up 42.59 points (1.44%) from the previous trading day. The index started at 2,964.30, up 6.18 points (0.21%) from the previous close, maintained an upward trend, and broke through the 3,000 mark around 10:21 a.m.

By investor type, foreign buying was prominent. Foreign investors net purchased 255.3 billion won worth of stocks. Institutions also showed a net buying advantage of 7.3 billion won. On the other hand, individuals net sold 268.4 billion won.

Among the top 10 by market capitalization, all stocks rose. Samsung SDI recorded the largest gain, rising 6.92% to 680,000 won compared to the previous day. SK Hynix (2.63%), LG Chem (4.15%), Samsung Electronics (1.36%), and Hyundai Motor (1.10%) also rose.

The KOSDAQ also showed an upward trend. The index rose 0.86% (7.62 points) to 897.69, once again approaching the 900 level. The index opened at 890.97, up 0.90 points (0.10%) from the previous close, showing a slight gain.

In the market, individuals and foreigners net purchased 53.6 billion won and 10.6 billion won respectively. Institutions net sold 53 billion won.

Among the top 10 by market capitalization, there were mixed movements. EcoPro BM rose the most at 3.34%. Celltrion Healthcare (0.51%), Celltrion Pharm (0.42%), and Pearl Abyss (2.29%) also increased. On the other hand, HLB (-1.22%), Alteogen (-2.50%), and Seegene (-3.45%) declined.

The rise in the domestic stock market that day is attributed to the strong performance of the US stock market overnight, supported by the Biden administration's agreement on a new stimulus package. The US House of Representatives passed a massive additional fiscal stimulus bill worth $1.9 trillion (about 2,100 trillion won). The market responded immediately. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 464.28 points (1.46%) to close at 32,297.02, and the Standard & Poor's (S&P) 500 index closed at 3,898.81, up 23.37 points (0.6%) from the previous trading day. The Dow set an all-time high both intraday and at the close. However, the Nasdaq, which is tech-heavy, closed down 4.99 points (0.04%) at 13,068.83.

Additionally, the recent stabilization of US Treasury yields also had an effect. The US Treasury's 10-year bond auction results were considered smooth. The bid-to-cover ratio was 2.38 times, nearly the same as the previous 2.37 times. It was not at a level that would raise concerns about demand, unlike the 7-year bond auction last month. Due to the decent auction results, the 10-year US Treasury yield fell to the low 1.5% range.

Especially on this day, the first 'Four Witching Day' of the year, when stock index futures, stock index options, single stock options, and single stock futures expire simultaneously, there were initial concerns about increased market volatility. Typically, Four Witching Day sees a flood of closing trades near the end of the session, causing overall market declines and volatility.

Lee Jin-woo, head of investment strategy at Meritz Securities, said, "Due to the US stimulus package and stable interest rates, the US securities market is showing signs of stabilization," adding, "Despite it being Four Witching Day in the domestic market today, it seems that investor sentiment reflected more the expectation that the market could stabilize rather than the expiration effect."

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