Quiet KOSPI... "Exploratory Moves Ahead of US FOMC"

KOSPI Stalls Around 3050 in Morning... KOSDAQ Rises 0.8%
Market Waits Ahead of FOMC... Trading Volume Declines Compared to Previous Day

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI, which started with a slight rise, is hovering around the 3050 level without significant fluctuations. This is interpreted as a strong wait-and-see sentiment ahead of the U.S. Federal Open Market Committee (FOMC) meeting scheduled for the 16th (local time).

As of 10:53 a.m. on the 16th, the KOSPI recorded 3059.96, up 0.47% from the previous day. After opening slightly higher at 3049.23, there has been little change.

The trading volume by investor type is also relatively low. At the same time, individual and institutional investors net bought 45.1 billion KRW and 79.5 billion KRW respectively, while foreign investors net sold 122.9 billion KRW. Compared to the previous day when individual investors net bought 510.5 billion KRW, this is less than 10%. The foreign investors’ net selling amount is also about half of the previous day’s 213.3 billion KRW. Institutional investors net sold 300.2 billion KRW the previous day.

By sector, most showed an upward trend. The electric and gas utilities sector rose the most by 3.71%. This was followed by precision medical instruments (2.09%), textiles and apparel (2.05%), excellent warehouses (1.87%), and pharmaceuticals (1.43%). Chemicals (-2.14%) and non-metallic minerals (-0.98%) declined.

Lee Hyoseok, a researcher at SK Securities, said, "Market participants are taking a wait-and-see stance while closely watching the upcoming U.S. FOMC results," adding, "Attention should be paid to the direction indicated by the FOMC going forward." Although there is a forecast that Jerome Powell, Chairman of the U.S. Federal Reserve (FED), is unlikely to take concrete measures to stabilize inflation at the FOMC, he emphasized that this should be viewed in a relative context.

Lee explained, "While Janet Yellen, U.S. Treasury Secretary, cannot be considered dovish for having raised the benchmark interest rate five times during her tenure as Fed Chair, considering the circumstances at the time, she effectively limited the hikes to five instead of ten, which can be seen as a dovish stance. Even if there are no specific measures at the FOMC, it is necessary to interpret this in the context of the economic situation and market trends."

The KOSDAQ also rose, but the increase was not large. At the same time, it recorded 934.82, up 0.85% from the previous day. After opening slightly higher at 928.17, it rose about 6 points.

In the KOSDAQ market, individual buying was prominent. Individuals alone net bought 85.3 billion KRW. Meanwhile, foreign and institutional investors net sold 21.9 billion KRW and 25.3 billion KRW respectively.

Many sectors also rose. The telecommunications services sector had the largest increase at 4.84%, followed by semiconductors (2.33%), telecommunications and broadcasting services (2.28%), entertainment and culture (1.99%), and distribution (1.67%). Information devices (-1.62%) and other manufacturing (-1.15%) declined.

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