'Thank You' Powell... Domestic Stock Market Rises Over 1% on Dovish Stance

Samsung Electronics and SK Hynix Rise Over 1%
"Semiconductors, Internet, and Other Top Market Cap Stocks to Lead Index Rebound"

[Asia Economy Reporter Minji Lee] The domestic stock market is showing strong gains in the early session, influenced by the U.S. stock market's rise following reduced uncertainty from the Federal Open Market Committee (FOMC).

At 9:09 a.m. on the 4th, the KOSPI stood at 3005.74, up 1.01% (30.03 points) from the previous trading day. The KOSPI opened at 3000.92, up 0.85% (25.21 points) from the previous day. Looking at trading trends by investor type, institutions alone purchased stocks worth 85.1 billion KRW, while foreigners and institutions sold stocks worth 10 billion KRW and 75.8 billion KRW, respectively.

Top market capitalization stocks also showed gains. Samsung Electronics and SK Hynix rose 1.28% and 1.42%, respectively. NAVER (2.24%), Samsung Biologics (2.24%), Kakao (2.01%), LG Chem (2.04%), Samsung SDI (1.64%), Hyundai Motor (1.44%), and Kia (1.06%) also continued their upward trends.

Following the FOMC announcement of tapering by the Federal Reserve (Fed) and Chairman Powell’s dovish stance on interest rate hikes, it is analyzed that the domestic stock market was positively influenced.

At the same time, the KOSDAQ index stood at 1014.89, up 0.98% (0.89 points) from the previous trading day. The index opened at 1012.62, up 0.76% (7.62 points) from the previous day. Regarding trading trends by investor type, institutions and individuals bought stocks worth 12 billion KRW and 28.7 billion KRW, respectively, while foreigners alone sold stocks worth 39.9 billion KRW.

Among the top market capitalization stocks in the KOSDAQ market, all showed gains except Wemade (-0.74%). Celltrion Healthcare (0.95%), EcoPro BM (2.61%), Pearl Abyss (0.76%), Kakao Games (2.81%), L&F (1.25%), and HL Biotech (0.47%) also rose.

Han Ji-young, a researcher at Kiwoom Securities, said, “The domestic stock market, which had fallen due to FOMC concerns, is expected to continue its rebound thanks to market-friendly outcomes. Although the absence of foreign investors was a supply-demand risk factor, considering that the foreign exchange market environment is becoming more favorable to the stock market, there is no need for excessive anxiety.”

She added, “With favorable supply-demand conditions and changes in external factors, large-cap stocks in semiconductors, internet, and automobiles will maintain solid price trends and drive the index rebound.”

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