KOSPI and KOSDAQ Start Higher... US CPI Declines and Bank of Korea Holds Interest Rates Steady

Market Watches Bank of Korea Governor Lee Chang-yong's Remarks
Optimism Cautioned Amid Expectations of Fed's Final Rate Hike in July

Lee Chang-yong, Governor of the Bank of Korea, is presiding over the Monetary Policy Committee meeting held on the 25th at the Bank of Korea in Jung-gu, Seoul. The Monetary Policy Committee meeting was held for the first time at the newly completed Bank of Korea headquarters, which was finished after six years. Photo by Joint Press Corps

On the 13th, the KOSPI and KOSDAQ started higher. As the US June Consumer Price Index (CPI) was confirmed to have slowed down faster than expected, the Korean stock market is also showing an upward trend. Additionally, the Bank of Korea kept the base interest rate unchanged, gradually increasing the gains.

As of 9:43 AM, the KOSPI is trading at 2,593.78, up 0.74% (19.06 points) from the previous day. The KOSPI opened at 2,589.89, up 0.59% (15.17 points) on the day.

Institutions alone are net buyers of 194.9 billion KRW, driving the index. Individuals and foreigners are net sellers of 138.9 billion KRW and 55.4 billion KRW, respectively. In the futures market, foreigners alone are net buyers of 684 billion KRW. Individuals and institutions are net sellers of 129 billion KRW and 520.4 billion KRW, respectively.

The expansion of investor sentiment is interpreted as reflecting expectations that the US tightening cycle will soon end. According to the US Department of Labor on the 12th (local time), the June CPI rose 3.0% year-on-year, slightly below the market forecast of 3.1%. The core CPI, which the Federal Reserve (Fed) considers a more accurate inflation gauge than the headline CPI, also rose 4.8%, lower than the market forecast of 5.0%.

Among the top 10 market capitalization stocks, most are rising. Only Kia (-0.34%) is in a downward trend. Samsung SDI (+2.32%) and Samsung Biologics (+1.64%) show notable gains.

The KOSDAQ is at 889.82, up 1.13% (9.94 points) from the previous day. It opened at 885.21, up 0.61% (5.33 points) from the previous day. The KOSDAQ is also led by institutions, which are net buyers of 84.4 billion KRW. Individuals and foreigners are net sellers of 50.8 billion KRW and 28.6 billion KRW, respectively.

Among the top 10 market capitalization stocks, there are more rising stocks. Celltrion Pharm leads with a 10.51% increase to 88,300 KRW. Celltrion Healthcare (+4.46%) and POSCO DX (+3.95%) also show notable gains. On the other hand, EcoPro BM (-0.54%) and L&F (-0.43%) are declining. Osstem Implant is unchanged.

In the market, while expectations are growing that the Fed will hold rates steady after the July rate hike, voices cautioning against excessive optimism coexist.

Meanwhile, the Bank of Korea held a Monetary Policy Committee meeting and kept the base rate at 3.5%. The market is paying more attention to the remarks of Bank of Korea Governor Lee Chang-yong than to the rate freeze itself.

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