Uncertainty Clears in Korean Stock Market... Closes Higher on Foreign Investors' Return

[Asia Economy Reporter Ji Yeon-jin] The domestic stock market closed higher on the 17th as concerns over U.S. monetary tightening eased. The KOSPI index recovered above 2700 during the session before slightly retreating, while the KOSDAQ index returned to the 900 level for the first time in eight trading days after falling below it earlier this month.

The KOSPI index closed at 2694.51, up 35.28 points (1.33%) from the previous day. The index surged to 2703.27 at the start of trading and maintained that level during the session, but fell slightly just before the close due to increased selling by individual investors.

Individual investors sold stocks worth 694.6 billion KRW to realize profits. Foreign investors led the buying with net purchases worth 463.7 billion KRW, and institutions also bought 249.9 billion KRW, driving the index upward. Foreign investors recorded net buying for the first time in nine trading days.

Following the Federal Open Market Committee (FOMC) raising the benchmark interest rate by 0.25 percentage points the previous day, the uncertainty over tightening that had dominated the market was resolved, restoring foreign investor sentiment. Lee Jin-woo, a researcher at Meritz Securities, said, "Although the Fed's statements were hawkish, the market interpreted them as indicating no additional tightening in the first half of the year. This perception that the U.S. tightening is not as aggressive as expected reduced sensitivity concerns and directly contributed to the rebound."

The non-metallic minerals sector rose the most, up 3.01%, followed by strong gains in chemicals (2.06%) and electrical and electronics (2.16%). SK Hynix jumped 6.44%, reclaiming its position as the second-largest market cap on the KOSPI, and LG Chem surged 6.33%. LG Energy Solution rose 3.44%, and NAVER increased by 4.24%. Most of the top market cap stocks, including Samsung Electronics (1.14%), Kakao (2.40%), Hyundai Motor (0.30%), and Samsung SDI (2.01%), also showed gains. However, Samsung Biologics fell 1.33%.

The KOSDAQ index closed at 914.13, up 22.33 points (2.50%) from the previous day. The index recovered above 900 early in the session and extended its gains throughout the day. Foreign investors led the rebound with net purchases worth 328.3 billion KRW, and institutions also joined with net buying of 260.5 billion KRW. Meanwhile, individual investors recorded net sales of 502.2 billion KRW.

In the KOSDAQ market, Cheonbo surged 8.77%, showing a steep rise, while secondary battery component stocks such as L&F (7.57%) and EcoPro BM (5.57%) stood out. Most stocks, including Celltrion Healthcare (4.76%), Celltrion Pharm (6.97%), Pearl Abyss (3.46%), Kakao Games (4.12%), HLB (5.26%), and Wemade (5.69%), also recorded gains. Only Rino Industrial fell by 1.21%.

Park Kwang-nam, a researcher at Mirae Asset Securities, explained, "Secondary battery stocks showed strength on expectations that if Russia and Ukraine reach a ceasefire, the sharp rise in raw material prices will stabilize and speculative forces will diminish. Metaverse and robot-themed stocks also performed well after Samsung Electronics announced at its shareholders' meeting plans to develop robot and metaverse technologies to secure future growth engines."

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