US '4 Consecutive Giant Steps' Lead KOSPI to Start Lower, Returns to 2300 Level... Large-Scale 'Selling' by Institutions

On the 3rd, as the U.S. Federal Reserve (Fed) showed a more hawkish stance than the market expected, the domestic stock market also started lower. This is a view of the Hana Bank dealing room in Jung-gu, Seoul. On that day, the KOSPI opened at 2297.45, down 39.42 points (1.69%) from the previous trading day, and the won-dollar exchange rate started at 1425.3 won, up 7.9 won. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Lee Myunghwan] The KOSPI partially reduced its decline in the morning session on the 3rd and returned to the 2300 level. After the U.S. Federal Reserve (Fed) decided at the Federal Open Market Committee (FOMC) meeting to raise the benchmark interest rate by 0.75 percentage points four consecutive times in a giant step, institutional investors engaged in large-scale selling.

As of 10:35 a.m. that day, the KOSPI was at 2314.45, down 0.96% (22.42 points) from the previous trading day. The KOSPI opened at 2297.45, down 1.69% (39.42 points), breaking below the 2300 level immediately after the opening, but has shown a gradual recovery trend.

Institutional investors sold stocks worth 384.6 billion KRW in the KOSPI market, engaging in large-scale selling. Foreign investors, who had recently maintained net buying, are also net sellers by 21.9 billion KRW. Individual investors alone are net buyers of 392.5 billion KRW.

Most of the top market capitalization stocks in the KOSPI are also declining. Samsung Electronics is trading at 58,300 KRW, down 2.18% (1,300 KRW) from the previous day, and SK Hynix is trading at 83,100 KRW, down 1.66% (1,400 KRW). Samsung Electronics Preferred shares are also trading down 2.40%. Finished car manufacturers such as Hyundai Motor (-1.82%) and Kia (-2.11%) are weak, while NAVER (-3.16%) shows a notable decline. On the other hand, LG affiliates related to secondary batteries such as LG Energy Solution (1.76%) and LG Chem (0.30%) are on the rise.

Looking at sector indices, non-metallic minerals (2.51%), construction (1.56%), and machinery (1.30%) are rising. Meanwhile, steel and metals (-2.56%), securities (-2.01%), and services (-1.60%) are falling.

At the same time, the KOSDAQ index is at 693.31, down 0.58% (4.06 points) from the previous trading day. The KOSDAQ opened at 685.42, down 1.71% (11.95 points), gradually reducing its decline.

Institutional investors are also net sellers of 38.1 billion KRW in the KOSDAQ market. In response, individual and foreign investors are buying 38.2 billion KRW and 1.2 billion KRW, respectively.

Among the top market capitalization stocks, game-related stocks are showing significant declines. Kakao Games (-4.18%) and Pearl Abyss (-2.46%) are falling. Pharmaceutical-related stocks such as Celltrion Healthcare (-1.88%), HLB (-1.81%), and Celltrion Pharm (-2.36%) are also declining. On the other hand, secondary battery supply chain stocks such as EcoPro BM (0.27%), L&F (0.14%), EcoPro (2.53%), and Cheonbo (1.39%) are all rising.

By KOSDAQ sector, other manufacturing (2.03%), metals (1.01%), and finance (0.79%) are on the rise, while digital content (-2.09%), internet (-1.35%), and distribution (-1.26%) are declining.

The securities industry predicts that despite the Fed's four consecutive giant step decisions, the decline in the domestic stock market will be relatively limited. Seo Sangyoung, head of the Media Content Division at Mirae Asset Securities, said, "Considering that the U.S. stock market immediately after the FOMC led to dollar weakness and a decline in Treasury yields, and that the decline in the U.S. stock market was centered on large technology stocks, the decline in the Korean stock market will be relatively limited," but also noted, "Fed Chair Jerome Powell's remark that the final interest rate level will be higher than the September forecast is expected to burden foreign demand, which is a concern."

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