The KOSPI showed mixed trading throughout the session on the 16th but rebounded with support from semiconductor stocks such as Samsung Electronics and SK Hynix. The KOSDAQ also gained momentum amid rising prices in materials, components, and equipment (소부장) sectors, turning positive one hour before market close. Experts anticipate that while the likelihood of a rate hike at the U.S. Federal Open Market Committee (FOMC) meeting this September remains high, its impact on the stock market will be minimal.
On this day, the KOSPI index closed at 6,717.97, up 90.71 points (1.37%) from the previous day.
Foreign investors continued net selling for six consecutive trading sessions in the KOSPI. However, the bullish trend solidified as top semiconductor stocks Samsung Electronics and SK Hynix rose. In particular, SK Hynix saw its gains expand following news that it is negotiating with Intel to establish its first memory semiconductor production facility in the United States.
The KOSDAQ closed at 815.98, up 3.57 points (0.44%) from the previous day. In the KOSDAQ, both foreign investors and institutional investors showed net selling trends. Amid this, semiconductor materials, components, and equipment stocks such as Wonik IPS displayed strong performance, enabling a late-session turnaround just before market close.
Securities firms evaluated that the semiconductor sector led the stock market rebound. They analyzed that despite concerns over a slowdown in AI (artificial intelligence) development, investments in AI infrastructure and memory orders are instead showing an upward trend, which has been reflected in the market.
Investors are closely watching the September FOMC meeting scheduled to open early tomorrow Korean time. Market expectations suggest that the Federal Reserve may take preemptive action to accelerate inflation moderation through an interest rate hike. The prevailing industry view is that even if rates are raised immediately, the impact on the market will be limited.
Kim Min-gyu, a researcher at KB Securities, stated, "As the inverse correlation between interest rates and stock prices has weakened since August–September, even if a rate hike occurs, the short-term market shock is expected to be limited." He added, "The stock market has already incorporated much of the uncertainty regarding interest rates following the outbreak of war between the U.S. and Iran, and until it becomes clear whether interest rate hikes are a long-term trend, EPS (earnings per share) momentum will provide time for the market."
Kang Jin-hyuk, a researcher at Shinhan Investment Corp., said, "The rebound was led by electrical and electronics stocks in the KOSPI and materials, components, and equipment sectors in the KOSDAQ. The KOSPI confirmed support below its upward trend and settled around the 6,700 level." He continued, "While the focus is less on whether rates will be raised in September, concerns over the possibility of consecutive future hikes remain a factor weighing on the market. Market sensitivity is expected to rise regarding Chairman Warsh of the Federal Reserve or other Fed officials' views on inflation and employment conditions, as well as how these are reflected in the dot plot."
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