The KOSPI opened higher on Thursday and has been fluctuating around the 6,700 level. While the Federal Reserve System (Fed) decided to raise its base rate last night and signaled further rate hikes within the year, which led to a decline in U.S. stock markets, domestic markets are interpreted as having formed early buying pressure due to prior anticipation of negative news.
At 9:06 a.m., the KOSPI index was trading at 6,759.45, up 41.48 points (0.62%). Based on cumulative data from Korea Exchange and NextTrade, institutional investors purchased net worth of 64.9 billion won, other corporations bought 52.9 billion won, individuals bought 46.4 billion won, while foreign investors sold net worth of 165.3 billion won.
Samsung Electronics traded at 255,750 won, up 2,250 won (0.89%), and SK Hynix traded at 1,756,000 won, down 3,000 won (0.17%).
Samsung C&T showed strength in the 2nd% range, Samsung Life Insurance rose in the 1st% range, while SK Square, Samsung Biologics, Samsung Electro-Mechanics, Hyundai Motor, and KB Financial Group fluctuated around flat levels. LG Energy Solution remained slightly below flat.
By sector, KOSPI retail, transportation equipment, machinery, metals, and logistics warehouses rose in the 1st% range; insurance, pharmaceuticals, chemicals, IT services, manufacturing, electrical & electronics, finance, securities, construction, electricity & gas, and medical precision held near flat. Real estate, textiles & apparel, entertainment & culture, and non-ferrous metals slipped to slightly below flat.
KOSPI 200 night futures closed down 1.00%.
On the 16th (local time), the U.S. Dow Jones Industrial Average fell 1.21% from the previous day, and the S&P 500 index dropped 0.45%. The NASDAQ Composite Index declined 0.01%, closing near flat, while the Philadelphia Semiconductor Index rose 0.63%.
The S&P 500 and NASDAQ indices initially rose slightly despite concerns over interest rate hikes but began falling after Federal Reserve Chair Jerome Powell's press conference for the September Federal Open Market Committee (FOMC) meeting. The Dow Jones Industrial Average showed mixed performance before plunging sharply alongside the press conference.
Brokerage firms analyzed that market sentiment contracted locally as Chair Powell hinted at the possibility of additional interest rate hikes within the year.
Kiwoom Securities researcher Han Ji-young stated, "Although short-term rates such as the 2nd-year U.S. Treasury bond rose after the September FOMC meeting, the increase in long-term rates like the 10th-year bond was limited." She added, "This suggests it is more appropriate to place greater weight on the direction of the 10th-year rate and international oil prices rather than the base rate hike itself."
Regarding the domestic market, she said, "While we may face pressure for increased volatility in the remaining days of this week, assuming that the pace of long-term interest rate increases stabilizes and earnings momentum is maintained ahead of the third-quarter earnings season, the volatility that could arise during conflicting market interpretations immediately after the FOMC should be viewed as a buying opportunity rather than a reason to reduce positions."
The KOSDAQ index stood at 822.84, up 6.86 points (0.84%) from the previous day. As of this moment, individuals bought net worth of 34.2 billion won, institutional investors purchased 1.6 billion won, while foreign investors sold net worth of 35.4 billion won.
The top market-cap group generally showed upward momentum. Jungsung Engineering rose in the 3rd% range; Reno Industrial, EcoPro, and HLB gained in the 1st% range. AlteoGen, EcoPro BM, IOTech, Rainbow Robotics, Robotis, and Wonik IPS held near flat, while Simtek remained slightly below flat.
By sector, KOSDAQ general services, finance, transportation equipment, pharmaceuticals, and electrical & electronics rose in the 1st% range; manufacturing, chemicals, retail, machinery, other manufacturing, medical precision, IT services, paper & wood, food & beverage, publishing media, and communications held near flat. In contrast, non-ferrous metals, logistics warehouses, entertainment & culture, construction, and textiles & apparel slipped to slightly below flat.
The won-dollar exchange rate was recorded at 1,378.7 won, up 1.7 won from the previous day at 9 a.m. in the Seoul foreign exchange market.
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