KOSPI Starts Lower... Market Waits Ahead of Economic Data and Monetary Policy Meeting

[Image source=Yonhap News]

[Asia Economy Reporter Junho Hwang] On the 11th, the KOSPI started lower ahead of economic indicator announcements from various countries.

On this day, the KOSPI opened at 2,687.54, down 12.85 points (0.48%). Although individuals appeared to support the index again, it is difficult to defend the index due to net selling by institutions and foreigners. As of 9:11 AM, individuals were net buyers with 103.4 billion KRW while institutions and foreigners were net sellers with 13.2 billion KRW and 92.1 billion KRW respectively.

Among all stocks, 556 stocks are declining. Among the top market capitalization stocks, only Hyundai Motor is showing an upward trend (0.85%). Kakao (down 2.76%) and Samsung SDI (down 2.00%) are showing declines in the 2% range.

Samsung Electronics, the immutable market leader, recorded 67,500 KRW, down 0.44% on the day. Despite recording record-high sales last week and strong first-quarter earnings this year, the stock price is moving in the opposite direction. LG Energy Solution also fell 1.71%, and SK Hynix dropped 0.89%.

The KOSDAQ also opened lower at 932.48, down 2.25 points (0.24%). On the KOSDAQ, individuals continue to be net buyers, while institutions and foreigners are selling. Individuals are net buying 53.7 billion KRW, while institutions and foreigners are net selling 43.3 billion KRW and 9.6 billion KRW respectively. Among the top market cap stocks, EcoPro BM is showing a slight rise (0.36%).

The USD/KRW exchange rate opened at 1,230.00, up 0.40% from the previous session.

[Image source=Yonhap News]

This week in the stock market, inflation-related economic indicators and the outcome of the Bank of Korea's Monetary Policy Committee meeting are expected to be key variables.

First, China's Producer Price Index (PPI) will be announced on the 11th. The market expects a slight slowdown to 8.7% compared to the previous 8.8%. However, the U.S. Consumer Price Index (CPI) for March, released the following day, is widely expected to show a higher inflation rate. Lee Kyung-min, a researcher at Daishin Securities, said, "The U.S. CPI is expected to record a higher level than in February," adding, "While retail sales amounts will increase due to inflation, consumer sentiment and production indicators are expected to remain weak."

The Monetary Policy Committee meeting on the 14th is expected to be the first meeting held without a governor since former Bank of Korea Governor Lee Ju-yeol's term ended at the end of last month. Whether the base interest rate will be raised despite the absence of a governor is a key market concern. Ahn Young-jin, a researcher at SK Securities, said, "Considering the recent hawkish stance of the U.S. Federal Reserve and the global hyperinflation trend, the possibility of a rate hike cannot be completely ruled out. However, given the vacancy in the governor position and the transition period of the administration, the likelihood of a rate freeze is high," adding, "With Lee Chang-yong's confirmation hearing scheduled for the 19th, active monetary policy is expected after his appointment is completed."

However, signs of upward revisions in earnings estimates are appearing mainly among large-cap stocks. Labor Gil, a researcher at Shinhan Financial Investment, said, "The KOSPI's 12-month forward net income (based on controlling shareholders) has increased by 4.6% compared to one month ago, indicating earnings growth," and added, "The KOSPI may show a recovery trajectory over time."

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