The KOSPI has been fluctuating in the early trading session on the 2nd, moving around the flat line amid rising U.S. Treasury yields and international oil prices. The KOSDAQ, which opened lower, turned positive on the back of net buying by institutional investors.
As of 9:24 a.m. on this day, the index stood at 6,980.93, up 9.58 points (0.14%) from the previous trading session. The KOSPI, which opened at 6,938.27, down 33.08 points (0.47%), narrowed its losses on net buying by retail investors before turning positive. Since then, the KOSPI has continued to fluctuate, failing to find direction between a slight gain and a slight loss.
The New York stock market also closed slightly higher after repeated fluctuations overnight. The S&P 500 index rose 14.91 points (0.19%) from the previous trading session to 7,666.45, while the tech-heavy NASDAQ Composite Index gained 10.53 points (0.04%) to 26,871.60. U.S. 10-year Treasury yields surged to 5.342%, their highest level in about 24 years, and expectations for monetary tightening by the Federal Reserve (Fed) grew following the release of the September Manufacturing Purchasing Managers' Index (PMI).
However, the U.S. stock market stabilized as a senior Federal Reserve official expressed a "cautious stance" on an interest rate hike. Philip Jefferson, Vice Chair of the Federal Reserve, said in a speech at the University of Virginia, "We must carefully review data trends and changes in outlook in future policy adjustments," adding, "It may take more time for my colleagues and me to reach our respective judgments."
Kim Seok-hwan, a researcher at Mirae Asset Securities, noted, "U.S. long-term Treasury yields have once again hit a 24-year high, and international oil prices surged due to comprehensive U.S. pressure on Iran." He added, "Micron Technology rose in the 3rd% range, while IBM and SanDisk gained in the 2nd% range, whereas Broadcom fell in the 2nd% range."
Han Ji-young, a researcher at Kiwoom Securities, stated, "The current stock market is reacting sensitively to faster-than-expected interest rate hikes, even though a high-interest-rate environment has been set as a constant." She forecasted, "Domestic stock prices will show limited upward momentum as some profit-taking selling emerges due to U.S. September employment data and wait-and-see sentiment during the domestic holiday period."
Looking at supply and demand, foreign investors' "sell" trend continues. In the KOSPI market (based on Korea Exchange data), retail investors net bought 45.6 billion won and institutional investors net bought 4.6 billion won, while foreign investors net sold 154.5 billion won.
Among top market capitalization stocks, Samsung Electronics is trading at 275,500 won, down 500 won (0.18%). SK Hynix is trading at 1,844,000 won, up 11,000 won (0.60%). SK Square, Samsung Electric, Samsung Biologics, Hanwha Aerospace, and Doosan Enerbility showed slight declines. Hyundai Motor and Samsung C&T fell in the 1st% range, while KB Financial Group rose in the 1st% range.
By sector, chemicals and telecommunications rose in the 1st% range, while machinery and equipment, medical and precision instruments, food and tobacco, and manufacturing showed slight gains. Finance, transportation and warehousing, insurance, IT services, entertainment and culture, real estate, distribution, and pharmaceuticals showed slight declines, while construction and securities fell in the 1st% range.
At the same time, the KOSDAQ stood at 898.23, up 3.94 points (0.44%) from the previous trading session.
In the KOSDAQ market, retail investors net sold 26.6 billion won and foreign investors net sold 12 billion won, while institutional investors bought 43.4 billion won, supporting the index.
Among top market capitalization stocks, Ecopro and Simtech showed strong gains in the 4th% range, while Rino Industrial was strong in the 3rd% range. Jusung Engineering rose in the 2nd% range, and Ecopro BM and Samchundang Pharmaceutical gained in the 1st% range. Alteogen and Wonik IPS showed slight declines, HLB fell in the 1st% range, and Iotech dropped in the 2nd% range.
In the KOSDAQ, finance was strong in the 3rd% range, electrical and electronics in the 2nd% range, while publishing and media, telecommunications, transportation equipment, and paper and wood were strong in the 1st% range. Chemicals, manufacturing, metals, machinery and equipment, construction, and food and tobacco showed slight gains. Entertainment and culture and pharmaceuticals showed slight declines, while distribution, non-metals, and general services fell in the 1st% range.
At 9 a.m. on this day in the Seoul foreign exchange market, the won/dollar exchange rate was trading at 1,361.4 won.
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