'It remains to be seen whether KOSPI will recover the 7,000-point level amid a rebound in semiconductor investment sentiment driven by Nvidia's strong earnings. With the Bank of Korea Monetary Policy Board raising the base rate to 3% for two consecutive days on the 27th, the direction of U.S. monetary policy is considered a key macroeconomic variable.
'On this day, KOSPI closed up in the single-digit percentage range as the 'Nvidia effect' was offset by the Bank of Korea Monetary Policy Board's base rate hike. Samsung Electronics and SK Hynix, which surged 3–4% at the market open, finished trading with reduced gains.
'KOSPI closed trading up 104.16 points (1.53%) from the previous day at 6,912.37.
'KOSPI opened the day up 187.19 points (2.76%) at 6,996.12 but turned to a modest gain after news of the base rate hike emerged. Pushed down to the 6,840 range by 10:01 a.m., KOSPI rebounded to a single-digit percentage gain thanks to buying from foreign investors and institutional investors.
'In the KOSPI market, individuals sold net 1.9121 trillion won, while foreigners bought net 135.4 billion won and institutional investors purchased net 181.4 billion won.
'Samsung Electronics and SK Hynix, which rose 3–4% at the market open, closed with gains reduced to the 1st–2% range. Samsung Electronics finished trading up 4,500 won (1.72%) from the previous day at 266,000 won, while SK Hynix closed up 42,000 won (2.49%) at 1.73 million won.
'Lee Kyung-min, a researcher at Daishin Securities, analyzed that "Nvidia's strong earnings strengthened investment sentiment across the semiconductor sector overall, but the Bank of Korea Monetary Policy Board's 0.25 percentage point base rate hike triggered caution."
'KOSDAQ closed up 10.78 points (1.30%) from the previous day at 837.65 points. KOSDAQ also turned to a modest gain immediately after the Bank of Korea interest rate hike but shifted to a bullish trend thanks to net buying by foreign investors. Simtek surged over 12%, while EcoPro and EcoPro BM showed strong gains in the 5th% range.
'The securities industry positively interpreted the continued rise of KOSPI despite the Bank of Korea's base rate hike.
'Kang Jin-hyuk, a researcher at Shinhan Investment Corp., stated, "Although KOSPI reduced its afternoon gains, there are positive aspects to consider." He added, "It smoothly navigated variables such as U.S. PCE (personal consumption expenditure) inflation and the Bank of Korea Monetary Policy Board, and Nvidia's earnings restored AI (artificial intelligence) investment sentiment."
'Market attention is turning toward U.S. monetary policy. Kevin Warsh, Chairman of the Federal Reserve SystemLee Sa-hoe (Chairman), is expected to outline the direction of U.S. monetary policy in a scheduled speech at 8 p.m. Korean time on the 28th.
'Researcher Kang said, "There remain the progress of Middle East negotiations and Chairman Warsh's speech." He noted, "Chairman Warsh may not provide specific directions for monetary policy, so we must look for hints in his macroeconomic diagnosis."
'Considering KOSPI's sector rotation, some analysts also diagnosed that it is time to broaden sector selection options.
'Han Ji-young, a researcher at Kiwoom Securities, said, "While semiconductor supply-demand concentration may rise again after Nvidia's earnings release, sector-specific rotation trading has intensified since August." She added, "It would be appropriate to focus on sectors such as retail and distribution, securities, and shipbuilding, and to keep open the possibility of diverse sector selection options that can generate excess returns in the future."'
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