Foreigners and institutions 'buy' as base interest rate holds... KOSPI closes at 2540 level

Expectations for End of Tightening with Rate Freeze
Touched 2550 Level Intraday

The KOSPI closed more than 1% higher on the 11th. This is interpreted as a result of combined buying by foreigners and institutions following the Bank of Korea's decision to keep the base interest rate unchanged.

On that day, the KOSPI ended the session at 2,547.86, up 35.78 points (1.42%) from the previous close. It started the session in a slightly firm range, but after the Bank of Korea's Monetary Policy Committee announced the decision to hold the base rate steady, foreigners and institutions increased their buying, pushing the index significantly higher.

Investors closely watched the Monetary Policy Committee meeting results that day. The rise was limited due to potential impacts on the exchange rate. Additionally, caution increased ahead of the U.S. March Consumer Price Index (CPI) announcement on the 12th. If the index is released showing continued inflationary pressure, it would increase the likelihood of the U.S. Federal Reserve (Fed) maintaining its tightening policy.

As a result, the mood changed when the Monetary Policy Committee kept the base rate at 3.50%. The market rose on growing expectations that 3.50% would be the final rate level for this rate hike cycle.

The KOSPI briefly touched 2,550.97 after 12 PM, reaching the 2,550 level during the session. Foreigners and institutions, who had been net sellers in the morning, turned to large-scale net buying in the afternoon. On that day, foreigners and institutions net bought 189.3 billion KRW and 295.1 billion KRW respectively in the KOSPI market. Individual investors alone net sold 494.2 billion KRW.

Most of the top market capitalization stocks rose. In particular, LG Chem, expected to benefit from the U.S. Inflation Reduction Act (IRA), surged 7.47% compared to the previous day. Kia (4.94%), Celltrion (4.21%), NAVER (3.58%), Hyundai Mobis (3.51%), and Hyundai Motor (3.34%) also rose sharply. By sector, chemicals (2.90%), transportation equipment (2.80%), textiles and apparel (2.44%), and securities (2.19%) showed notable gains.

The KOSDAQ index closed at 898.94, up 11.16 points (1.26%) from the previous session. The index opened at 893.20, up 5.42 points (0.61%) from the previous day, and extended its gains to approach the 900 level during the session (899.37). In the KOSDAQ market, foreigners alone net sold 62.4 billion KRW. Individuals and institutions net bought 102.6 billion KRW and 1.5 billion KRW respectively.

Ecopro, the leading stock on the KOSDAQ, rose sharply by 6.51%, marking its fifth consecutive day of gains. Among other top market cap stocks, Celltrion Healthcare (3.56%), Rainbow Robotics (3.22%), and SM (1.67%) also rose significantly.

On that day, the trading value in the KOSPI and KOSDAQ markets was recorded at 13.954 trillion KRW and 16.643 trillion KRW respectively.

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