[BoK Big Step] Despite First Ever Big Step, KOSPI and KOSDAQ Rise 1%... "Impact Limited"

Bank of Korea Governor Lee Chang-yong is striking the gavel at the Monetary Policy Committee plenary meeting held at the Bank of Korea in Jung-gu, Seoul on the 13th. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Lee Myunghwan] The Bank of Korea's Monetary Policy Committee (MPC) decided on the country's first-ever 'big step' (a 0.5 percentage point increase in the base interest rate at once) on the 13th, and the domestic stock market is showing nearly a 1% rise. The market is interpreted to be staging a relief rally as the big step decision was somewhat anticipated.

As of 10:15 a.m. on the same day, immediately after the MPC's big step decision, the KOSPI index stood at 2,339.82, up 0.95% (22.06 points) from the previous trading day. The KOSPI opened at 2,324.45, up 0.29% (6.69 points), then the upward momentum slowed and it moved sideways, but it turned to an upward trend after the big step decision.

Looking at investors by type, individuals sold stocks worth 161.9 billion KRW alone, while foreigners and institutions bought net amounts of 31 billion KRW and 135.6 billion KRW, respectively.

Top market capitalization stocks in the KOSPI market are all showing gains. Hyundai Motor is trading at 185,000 KRW, up 3.35% (6,000 KRW) from the previous day, along with ▲SK Hynix (2.36%) ▲Kia (1.91%) ▲LG Chem (1.36%) ▲Naver (1.07%) showing upward trends. Only Samsung Biologics fell slightly by 0.12%.

At the same time, the KOSDAQ index is also up 1.24% (9.34 points) at 760.12 compared to the previous trading day. The KOSDAQ index started at 751.34, up 0.07% (0.56 points) from the previous day, then the upward momentum weakened and turned downward, but it reversed to an upward trend before and after the base rate hike decision.

By investor type in KOSDAQ, individuals and institutions are net buyers of 45.6 billion KRW and 8 billion KRW, respectively, while foreigners sold stocks worth 50 billion KRW alone.

Top market capitalization stocks in KOSDAQ are also rising, with EcoPro BM trading at 117,000 KRW, up 5.50% (6,100 KRW) from the previous day. Seegene is the only stock showing a decline, down 1.26% from the previous day.

Since the Bank of Korea's big step decision was somewhat anticipated, its impact on the domestic stock market appears limited. Seo Sangyoung, head of the Media Content Division at Mirae Asset Securities, forecasted, "The big step is expected due to price stability and the global trend of interest rate hikes, so the impact on the stock market will be limited." However, Seo noted, "If Bank of Korea Governor Lee Changyong's press conference shows a more hawkish stance than expected regarding the size and frequency of additional rate hikes, increased volatility will be inevitable."

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