KOSPI Ends Up Over 1% on Expected Benchmark Rate Hike... KOSDAQ Returns to 800 Level

[Image source=Yonhap News]

[Asia Economy Reporter Myung-Hwan Lee] On the 25th, both the KOSPI and KOSDAQ indices closed with gains of over 1%. This was influenced by the Bank of Korea's Monetary Policy Committee (MPC) raising the base interest rate by 0.25 percentage points as initially expected by the market, which helped reduce uncertainty. Foreign investors and institutions showed net buying, driving the index upward.

On that day, the KOSPI closed at 2,477.26, up 1.22% (29.81 points) from the previous trading day. The KOSPI opened at 2,459.79, up 0.50% (12.34 points) from the previous day, and then increased its gains following the MPC's decision to raise the base interest rate.

The MPC decided at the monetary policy direction meeting held from 9 a.m. that day to raise the current base interest rate from 2.25% per annum to 2.50%, an increase of 0.25 percentage points. This marked the first time in history that the base interest rate was raised four consecutive times.

The MPC's decision, which aligned with market expectations, is estimated to have reduced uncertainty and led to a recovery in the stock market. Seok-Hwan Kim, a researcher at Mirae Asset Securities, noted, "Following the base rate hike decision, the won-dollar exchange rate also declined, expanding the inflow of buying orders from institutions in the spot market and foreigners in the futures market," adding, "Most sectors in both KOSPI and KOSDAQ rose evenly."

Institutions and foreigners purchased stocks worth 119.9 billion KRW and 41.2 billion KRW respectively in the securities market. Institutional investors showed net buying for the first time in seven trading days. Foreign investors, who had been selling during the morning session, turned to net buying near the market close. Conversely, individual investors sold stocks worth 180.2 billion KRW.

Among the top 10 stocks by market capitalization in the securities market, nine closed at prices higher than the previous day. Samsung Electronics closed at 59,700 KRW, up 1.19% (700 KRW) from the previous day, approaching the "60,000 KRW electronics" milestone. Hyundai Motor closed at 192,000 KRW, up 2.13% (4,000 KRW), marking the largest gain. Other stocks that rose included LG Energy Solution (1.77%), SK Hynix (0.97%), Samsung Biologics (2.05%), Samsung Electronics Preferred (0.74%), LG Chem (0.33%), NAVER (1.24%), and Kakao (1.60%). Samsung SDI was the only stock to close lower, down 0.68%.

Sector indices also closed higher across the board. Transportation and warehousing (2.45%), machinery (2.18%), and pharmaceuticals (1.93%) showed significant gains.

The KOSDAQ index closed at 807.37, up 1.79% (14.23 points) from the previous day, returning to the 800 level for the first time in four trading days. The KOSDAQ opened at 795.18, up 0.26% (2.04 points) from the previous day, and then showed a steep upward curve.

Foreigners and institutions also led the rise in the KOSDAQ market, purchasing stocks worth 63.7 billion KRW and 64.6 billion KRW respectively. Individual investors sold stocks worth 129 billion KRW.

All of the top 10 stocks by market capitalization in KOSDAQ closed higher. Pharmaceutical and bio stocks such as Celltrion Pharm (3.32%), HLB (3.31%), Celltrion Healthcare (2.90%), and Alteogen (1.50%) showed strong gains. Entertainment stocks including Kakao Games (1.71%), Pearl Abyss (1.60%), and Studio Dragon (1.60%) also rose. Secondary battery-related stocks such as L&F (2.85%), EcoPro (1.34%), and EcoPro BM (0.95%) all increased.

KOSDAQ sectors also closed higher across the board. Gains were notable in other manufacturing (2.91%), semiconductors (2.75%), IT components (2.61%), and IT hardware (2.54%).

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