The Expected Downturn Is a 'Booster'... Kosdaq Recovers to 900 Amid US Interest Rate Tailwind

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] On the 17th, the KOSDAQ index recovered to 900. This was thanks to the disappearance of tightening uncertainties and the stimulation of investor sentiment as the U.S. raised interest rates by 0.25 percentage points as the market had expected.

As of 1:45 PM on the same day, the KOSDAQ index was trading at 915.20, up 2.62% (23.40 points) from the previous day. Foreign investors led the index by net buying about 262.9 billion KRW, and institutions by about 171.3 billion KRW. Individual investors were net sellers of about 361.7 billion KRW in the KOSDAQ market.

At the same time, the KOSPI was at 2,707.45, up 1.81% (48.22 points). Institutions led the index by net selling about 447.1 billion KRW, while foreign investors supported the market by net buying about 283.3 billion KRW. Individual investors were net sellers of about 703.6 billion KRW.

The sharp rebound on this day was largely influenced by the positive momentum in the U.S. stock market the previous day. The U.S. Federal Open Market Committee (FOMC) raised interest rates by 0.25 percentage points the day before, but interpretations that the tightening intensity would ease revived investor sentiment. Lee Jin-woo, a researcher at Meritz Securities, said, "The Fed's statements were hawkish, but the market interpreted that there would be no additional tightening in the first half of the year. This perception that the U.S. tightening is not as intense as expected reduced sensitivity burdens and directly influenced the rebound."

The rebound in the Chinese stock market, which had locked down some cities due to the spread of COVID-19, also contributed to stimulating domestic investor sentiment.

In the securities market on this day, SK Hynix rose 6.44%, and LG Chem also showed a 7.01% increase, with stocks that had experienced excessive declines showing strength. Most of the top market capitalization stocks, including Samsung Electronics (1.14%), LG Energy Solution (3.71%), Naver (4.99%), and Kakao (3.85%), were strong. Kakao Bank (-0.19%) was the only stock showing weakness.

In particular, in the KOSDAQ market, Cheonbo jumped 9.12%, and Celltrion Healthcare (6.20%) and Celltrion Pharm (7.69%) surged. EcoPro BM and L&F also rose 5.60% and 7.74%, respectively, with most of the top 10 market capitalization stocks recording gains exceeding 4%.

The researcher said, "Although there is no major positive news, the perception of oversold conditions and the high possibility of market improvement are driving the index," adding, "It appears that just as the U.S. has already entered a technical rebound phase, our stock market has also entered a rebound phase."

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