KOSPI Rises Over 1% as 금통위 Uncertainty Eases... Institutions 'Buy'

[Image source=Yonhap News]

[Asia Economy Reporter Myung-hwan Lee] On the afternoon of the 25th, the KOSPI index is showing a rise of over 1%, expanding its gains in the market. This appears to be due to a slight easing of uncertainty following the Bank of Korea's Monetary Policy Committee (MPC) decision to raise the base interest rate by 0.25 percentage points as expected by the market. Institutional investors are leading the index's rise with net purchases close to 80 billion KRW.

As of 2 PM on the day, the KOSPI stands at 2,472.80, up 1.04% (25.35 points) from the previous trading day. The KOSPI opened at 2,459.79, up 0.50% (12.34 points) from the previous day, and has been increasing its upward momentum following the MPC's decision to raise the base interest rate.

The MPC decided in its monetary policy direction meeting held from 9 AM that day to raise the current base interest rate from 2.25% to 2.50%, an increase of 0.25 percentage points. This marks the first time in history that the base rate has been raised four consecutive times.

Institutional investors are driving the index's rise by purchasing stocks worth 78.7 billion KRW in the KOSPI market. Meanwhile, individual and foreign investors are net sellers, offloading 72.4 billion KRW and 22.2 billion KRW respectively.

Among the top 10 stocks by market capitalization in the KOSPI market, nine are rising. Hyundai Motor Company stands out with a 2.13% increase (4,000 KRW), trading at 192,000 KRW. Following are Samsung Biologics (1.93%), LG Energy Solution (1.66%), Kakao (1.47%), and Naver (1.45%). Samsung Electronics is also up 0.85% (500 KRW), trading at 59,500 KRW. Samsung SDI (-0.85%) is the only stock declining.

At the same time, the KOSDAQ index is at 805.75, up 1.59% (12.61 points) from the previous day, returning above the 800 mark during trading for the first time in four sessions. The KOSDAQ opened at 795.18, up 0.26% (2.04 points) from the previous day, and is showing a steep upward curve.

Foreign and institutional investors are buying stocks worth 37.9 billion KRW and 29.6 billion KRW respectively in the KOSDAQ market. Conversely, individual investors are selling stocks worth 62.3 billion KRW.

All of the top 10 stocks by market capitalization in the KOSDAQ are trading at higher prices than the previous day. The pharmaceutical and bio sectors, including Celltrion Pharm (2.94%), HLB (2.54%), and Celltrion Healthcare (2.35%), are showing strong gains. Entertainment stocks such as Studio Dragon (1.60%), Kakao Games (1.33%), and Pearl Abyss (1.25%) are also rising.

The rise in the domestic stock market on this day also seems influenced by the previous day’s U.S. stock market closing higher despite an unfavorable environment. Sang-young Seo, Head of Media Content Division at Mirae Asset Securities, said, "The U.S. stock market’s rise despite the expansion of Treasury yields and renewed strength of the dollar ahead of the Jackson Hole meeting is expected to have a positive impact on the Korean stock market." He added, "It is also positive that Federal Reserve Chairman Jerome Powell is expected to make remarks at the Jackson Hole meeting that are not significantly different from recent Fed officials’ statements, rather than announcing a new and more aggressive rate hike policy."

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