KOSPI and KOSDAQ Close Higher... Investor Sentiment Boosted by US CPI and FOMC Results

[Image source=Yonhap News]

The KOSPI and KOSDAQ closed higher on the 13th following a larger-than-expected slowdown in U.S. inflation. On the same day, the Bank of Korea also kept the base interest rate unchanged for the fourth consecutive time, raising expectations that the tightening stance would come to an end.

The KOSPI closed at 2,591.23, up 0.64% (16.51 points) from the previous day. The KOSPI started the day at 2,589.89, up 0.59% (15.17 points) from the previous day, and maintained a steady upward trend.

In the early session, only institutional investors showed a 'buy' trend, but foreign investors joined in. Foreigners and institutions net purchased 213.2 billion KRW and 508.7 billion KRW, respectively. Individual investors alone net sold 719.1 billion KRW. In the futures market, only foreign investors bought futures worth 1.3399 trillion KRW. Individuals and institutions sold futures worth 354.8 billion KRW and 747.7 billion KRW, respectively.

The top 10 stocks by market capitalization showed mixed trends. Samsung SDI +3.77%, POSCO Holdings +3.35%, LG Chem +2.60%, Samsung Biologics +2.47%, LG Energy Solution +1.50% closed higher.

Bank of Korea Governor Lee Chang-yong 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, completed after six years. Photo by Joint Press Corps

The KOSDAQ closed at 893.07, up 1.50% (13.19 points) from the previous day. It started at 885.21, up 0.61% (5.33 points), and then significantly expanded its gains. Foreign investors alone net purchased 180.1 billion KRW, driving the index. Meanwhile, individual and institutional investors net sold 148.2 billion KRW and 29.2 billion KRW, respectively.

Looking at the top 10 stocks by market capitalization, most showed an upward trend. POSCO DX surged 17.44% to close at 25,250 KRW. It hit a 52-week high following reports that it plans to transfer its listing to the KOSPI and has started selecting underwriters.

Celltrion group stocks also closed sharply higher after merger announcements. Celltrion Healthcare +2.31%, Celltrion Pharm +9.89% were recorded.

Lee Jaeman, a researcher at Hana Securities, analyzed, "Positive investment sentiment was formed due to the strong U.S. June Consumer Price Index (CPI) and the Bank of Korea's decision to keep the base rate unchanged, which eased expectations of further rate hikes. The domestic stock market closed higher on buying by institutions and foreigners amid expectations of price stability and accommodative monetary policy."

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