US-Originated 'FOMC·Micron' Tailwind Pushes 2750 Breakthrough... Highest in 2 Years

The KOSPI surged more than 2%, breaking the 2750 mark for the first time in two years, following the U.S. Federal Open Market Committee (FOMC)'s reaffirmation of its rate cut policy and positive momentum in the semiconductor sector. On the day, individual investors sold about 3 trillion won worth of stocks in the KOSPI market alone, marking a record high net selling amount.

On the 21st, the KOSPI showed a strong rise of over 2%, closing above 2,700 points in the 2,750 range. Employees are working in the newly built Hana Infinity Seoul dealing room at the Hana Bank headquarters. Photo by Younghan Heo younghan@

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On the 21st, the KOSPI index closed at 2754.86, up 64.72 points (2.41%) from the previous trading day. This is the first time in about two years since April 5, 2022 (2759.20) that the index closed above the 2750 level. Strong net buying by foreigners and institutions lifted the index.

In the securities market that day, foreigners and institutions purchased stocks worth 1.8706 trillion won and 1.0512 trillion won, respectively. In contrast, individual investors net sold 2.9107 trillion won worth of stocks. This is the largest net selling amount since related statistics began in 1998. The previous record for individual net selling was 2.4896 trillion won (February 2).

Among the top market capitalization stocks in the KOSPI, semiconductor leaders showed remarkable gains. Samsung Electronics, the largest by market cap on the KOSPI, rose more than 3% (3.12%). As the stock price surged significantly, individual investors sold 1.5421 trillion won worth of shares. SK Hynix also jumped nearly 9% (8.63%). Besides semiconductor stocks, other top market cap stocks such as LG Energy Solution (1.47%), Hyundai Motor (4.56%), Celltrion (1.2%), POSCO Holdings (1.17%), and Kia (1.40%) also showed strength.

The KOSPI's strength is interpreted as a combined result of positive factors including the U.S. FOMC outcome, global semiconductor tailwinds such as Nvidia GTC2024 and Micron's earnings, and the government's corporate value-up programs.

The three major indices of the U.S. New York Stock Exchange all closed higher on the 20th (local time). Investors welcomed the Federal Reserve's decision at the FOMC meeting to maintain the forecast of three rate cuts this year, leading all three indices to hit record highs.

Jerome Powell, Chair of the U.S. Federal Reserve, stated at a press conference after the FOMC regular meeting, "The downward trend in inflation has not changed," and "Strong employment alone is not a reason to delay rate cuts," signaling a dovish stance on rate cuts.

The KOSDAQ index also showed strength. On the day, the KOSDAQ index closed at 904.29, up 1.44% from the previous session. This is the first time in about six months since September 11 last year (912.55) that the KOSDAQ closed above the 900 level. Foreigners and institutions net bought 358.7 billion won and 17.4 billion won, respectively, while individual investors alone net sold 361.8 billion won.

Most of the top market cap stocks in the KOSDAQ showed gains. Ecopro BM (4.15%) and HLB (8.57%) rose significantly, and semiconductor value chain stocks such as HPSP (2.33%) and Dongjin Semichem (16.52%) also increased. On the other hand, Enchem (348370) fell 4.39%, Alteogen (96170) dropped 1.68%, Lino Industrial (058470) declined 1.0%, and Shinseong Delta Tech (065350) decreased 0.74%.

Ji-won Kim, a researcher at KB Securities, analyzed, "In addition to relief from the FOMC, Micron's surprise earnings acted as a catalyst for the domestic stock market's rise. The domestic market started strong centered on semiconductors, and although there was a concentration on Samsung Electronics and SK Hynix, unlike the previous day, the upward trend spread to most sectors in terms of stock prices."

He added, "Although the short-term surge is a burden, it is expected that the trend will continue for growth stocks and related stocks with low price-to-book ratios (PBR) for the time being."

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