KOSPI Rallies at 2330 Level on Relief... Uncertainty Resolved by Big Step Decision

[Image source=Yonhap News]

[Asia Economy Reporter Lee Myunghwan] On the afternoon of the 13th, the KOSPI is moving in the low 2330 range. Although the Bank of Korea's Monetary Policy Committee (MPC) implemented an unprecedented big step (a 0.5 percentage point increase in the base interest rate at once) in the morning, the market is interpreted as showing strength due to the resolution of uncertainty.

As of 1:53 PM, the KOSPI is at 2333.12, up 0.66% (15.36 points) from the previous trading day. The KOSPI opened at 2324.45, up 0.29% (6.69 points), then the rise slowed down but increased again around the MPC's rate hike decision. By investor type, individuals and foreigners are net sellers of 265.8 billion KRW and 18.4 billion KRW respectively, while institutions alone are net buyers of 288.5 billion KRW.

The rise today appears to be due to the resolution of uncertainty following the big step decision. Lee Kyungmin, a researcher at Daishin Securities, said, "The MPC's results and content were overall hawkish, but the perception of pre-reflection and the inflow of uncertainty resolution sentiment led the stock market to show strength," adding, "The KOSPI rise was supported by foreigners switching to net buying during the session due to the won's appreciation and the resulting drop in the won-dollar exchange rate."

Many of the top market capitalization stocks in the KOSPI are also on the rise. Hyundai Motor stands out with a 2.79% (5,000 KRW) increase to 184,000 KRW compared to the previous trading day. NAVER (1.93%), Kia (1.52%), and SK Hynix (1.39%) are also rising. Samsung Electronics Preferred (-0.57%), LG Energy Solution (-0.25%), and Samsung Biologics (-0.24%) are declining.

By sector, textiles and apparel rose sharply by 4.04%. Transportation and warehousing (2.06%), non-metallic minerals (1.65%), and service industries (1.43%) are also up. Electric and gas utilities (-1.18%) are declining.

At the same time, the KOSDAQ index is at 763.48, up 1.69% (12.70 points) from the previous trading day. The KOSDAQ opened at 751.34, up 0.07% (0.56 points), then turned down before increasing its gains following the big step decision. By investor type, individuals and foreigners sold 12.5 billion KRW and 29.1 billion KRW respectively, while institutions alone bought 47.8 billion KRW.

Among the top 10 market capitalization stocks in KOSDAQ, 9 are rising. EcoPro BM (7.75%), HLB (7.53%), CJ ENM (6.51%), Alteogen (4.38%), Pearl Abyss (4.31%), and L&F (4.12%) are among the many gaining stocks. Seegene is the only decliner, down 1.58% from the previous trading day.

By KOSDAQ sector, publishing and media replication (5.37%), broadcasting services (4.37%), general electrical and electronics (4.04%), and transportation equipment and parts (3.94%) are rising. Metals (-1.08%) are declining.

However, some analyses suggest that further gains in the stock market today will be limited. Researcher Lee said, "The relatively small scale of foreign trading and their return to net selling are limiting additional gains in the KOSPI."

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