KOSPI Rises Despite First Ever Big Step Hike, Returns to 2320 Level... Institutions 'Buy'

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] On the 13th, the KOSPI closed higher despite the Bank of Korea Monetary Policy Committee's (MPC) unprecedented big step (a 0.5 percentage point hike in the base interest rate at once). This is interpreted as the market viewing the MPC's big step decision as a resolution of uncertainty. However, the upward momentum softened somewhat toward the end of the session due to a turnaround in the Chinese stock market and caution ahead of the U.S. June Consumer Price Index (CPI) release.

On the day, the KOSPI closed at 2,328.61, up 0.47% (10.85 points) from the previous trading day. The KOSPI opened at 2,324.45, up 0.29% (6.69 points), then briefly declined before turning upward around the time of the MPC's rate hike decision.

The rise appears to be due to the resolution of uncertainty following the big step decision. Seokhwan Kim, a researcher at Mirae Asset Securities, said on the 13th regarding the domestic stock market, "After the MPC announced a 0.5 percentage point rate hike in the morning, uncertainty was resolved, maintaining the upward trend," adding, "However, caution ahead of the U.S. June CPI release and the Chinese stock market's downturn partially reduced the gains."

Looking at investors by type, individuals and foreigners sold stocks worth 256.2 billion KRW and 100 billion KRW respectively, while institutions alone net bought 356.7 billion KRW. Institutions showed net buying in the domestic stock market for the first time in three trading days.

Top market capitalization stocks in the KOSPI showed mixed movements by stock. Samsung Electronics, which had been rising during the session, turned downward at the end and closed at 58,000 KRW, down 0.17% (100 KRW) from the previous day. LG Energy Solution (-0.25%), Samsung Biologics (-0.24%), and Samsung Electronics Preferred (-0.57%) also closed lower. Automakers including Hyundai Motor (2.51%) and Kia (1.40%), as well as Naver (1.71%), SK Hynix (0.75%), and LG Chem (0.58%) closed higher. Samsung SDI ended the day unchanged at 528,000 KRW.

By sector in the KOSPI market, Textile & Apparel (4.02%), Non-metallic Minerals (2.01%), and Transportation & Warehousing (1.86%) rose, while Medical Precision (-1.78%) and Insurance (-1.09%) declined.

The KOSDAQ index closed at 763.18, up 1.65% (12.40 points) from the previous day. The KOSDAQ opened at 751.34, up 0.07% (0.56 points), then turned downward before gradually increasing gains following the big step decision news.

By investor type, individuals alone sold stocks worth 67.8 billion KRW, while foreigners and institutions net bought 900 million KRW and 73.7 billion KRW respectively.

Among the top 10 market capitalization stocks in KOSDAQ, nine closed higher. EcoPro BM stood out with an 8.21% (9,100 KRW) rise to 120,000 KRW. CJ ENM (6.93%), HLB (5.62%), L&F (4.32%), and Pearl Abyss (3.91%) also rose. Seegene was the only stock to close lower, down 3.05% (1,450 KRW) to 46,050 KRW.

By sector in KOSDAQ, most sector indices rose, including Publishing & Media Replication (5.13%), Broadcasting Services (4.76%), and General Electric & Electronics (4.28%). Some sectors such as Metals (-0.57%) and Construction (-0.52%) declined slightly.

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