The KOSPI closed near flat on Thursday, defending against a storm triggered by the Federal Reserve System (Fed). Market shock from hawkish gestures proved less severe than initially feared. Amid lingering concerns over tightening pressures, the next key turning point for the stock market was identified as the direction of Japan's base rate.
The KOSPI closed at 6,715.41, down 2.56 points (0.04%). The intraday high-low range was 97.68 points. The index fluctuated within a ±1% range before giving up late-session gains.
According to cumulative data from Korea Exchange and NextTrade, other corporations purchased net worth of 1.6998 trillion won, individuals bought 526 billion won, and institutional investors acquired 229 billion won in net purchases, while foreign investors sold off 2.4606 trillion won in net sales. Foreigners recorded net selling for seven consecutive trading days.
The price swings of top market capitalization semiconductor stocks showed notable moderation. In regular trading hours, Samsung Electronics closed down 1,000 won (0.39%) at 252,500 won, and SK Hynix closed down 14,000 won (0.80%) at 1.745 million won, while Samsung Electro-Materials showed a slight flat trend. Samsung Electric declined by over 3%, while SK Square and Samsung Life Insurance fell by over 1%.
Among non-semiconductor stocks, HD Hyundai Heavy Industries, which had been discussed as overly oversold, rebounded by over 6%, and Hanwha Aerospace, benefiting from heightened expectations related to SpaceX, recovered by over 3%. By sector, KOSPI transportation equipment rose by over 2%, machinery and transportation warehousing gained over 1%, while entertainment and culture declined by over 1%.
Lee Kyung-min, a researcher at Daishin Securities, stated, "Since the possibility of an interest rate hike has been largely priced in, market shock was limited. With international oil prices also stabilizing, investor sentiment showed relatively positive trends."
He continued, "President Donald Trump of the United States held direct talks with Iran and made remarks suggesting the war could end within the year, which positively influenced investor sentiment. However, considering the upcoming midterm elections, it is too early to fully trust these developments."
Im Jeong-eun and Tae Yun-seon, researchers at KB Securities, noted, "Rotation into non-semiconductor sectors such as machinery, transportation, and insurance has spread." They added, "While October's FOMC meeting being held just before the midterm elections is a concern, given the strong economy and the Federal Reserve's assessment that 'monetary policy stance remains not yet fully tightened,' an additional interest rate hike in October is unlikely."
The researchers further added, "The Bank of Japan (BOJ) is scheduled to announce its monetary policy meeting results on the 18th. It will be necessary to confirm whether additional tightening occurs and how financial markets react."
In the securities industry, there are also observations that attention must be paid to the direction of U.S. 10-year Treasury yields, international oil prices, and exchange rates simultaneously.
Byun Jun-ho, a researcher at IBK Investment & Securities, said, "Concerns about interest rate hikes remain in the market and are expected to be a burden, but the decline is not likely to be significant." He explained, "Since last week, the domestic stock market has shown preliminary corrections. Additionally, U.S. market rates have not changed significantly following the FOMC results, and the Federal Reserve's economic outlook remains optimistic."
He further stated, "In Korea, more attention should be paid to exchange rate increases than interest rates. While interest rates in Korea are expected to remain unchanged, additional hikes by the Federal Reserve are anticipated, which could put upward pressure on the dollar. Moreover, since the exchange rate recently fell sharply, foreign selling pressure needs to be closely monitored."
The KOSDAQ index closed at 822.18, up 6.20 points (0.76%) from the previous day. Institutional investors purchased net worth of 47 billion won, and other corporations bought 14 billion won in net purchases, while foreign investors sold off 33 billion won and individuals sold 28.5 billion won in net sales.
Among top market capitalization stocks, RAINBOW Robotics showed a strong trend of over 1%. In contrast, Simtek, EcoPro BM, IOTechnics, and Wonik IPS declined by over 1%. By sector, KOSDAQ export-oriented companies rose by over 3%, metal and transportation equipment gained over 2%, and electrical/electronics, IT services, and finance advanced by over 1%, while entertainment and culture closed trading with a decline of over 2%.
On this day, the won/dollar exchange rate closed at 1,382.2, up 13.6 won from the previous day, concluding Seoul's foreign exchange market weekly trading.
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