[Asia Economy Reporter Lee Seon-ae] The domestic stock market started on an upward trend. Supported by net purchases from foreigners and institutions, the KOSPI surpassed the 3200 mark before slightly declining again, while the KOSDAQ also crossed the 1000 mark and has been fluctuating around the 990 level.
As of 9:15 a.m. on the 29th, the KOSPI is trading at 3,195.38, up 13.91 points (0.44%) from the previous day.
Institutions and foreigners are net buyers with 60.2 billion KRW and 39.5 billion KRW respectively, while individuals are net sellers with 89.1 billion KRW.
Among the top 10 KOSPI stocks by market capitalization, LG Chem (4.16%), Samsung Biologics (1.26%), Naver (NAVER, 0.94%), Samsung SDI (0.90%), SK Hynix (0.77%), Samsung Electronics Preferred (0.68%), and Samsung Electronics (0.24%) rose. Meanwhile, Celltrion (-0.93%), Hyundai Motor (-0.90%), and Kakao (-0.84%) declined.
By sector, the rising sectors include Steel & Metals (2.46%), Distribution (1.94%), Chemicals (1.26%), Banking (0.78%), and Food & Beverage (0.68%). The declining sectors are Transportation & Warehousing (-0.51%), Transportation Equipment (-0.47%), Telecommunications (-0.46%), Pharmaceuticals (-0.3%), and Paper & Wood (-0.03%).
The KOSDAQ is trading at 1,001.08, up 2.81 points (0.28%) from the previous day.
Individuals are net buyers with 25.8 billion KRW, while institutions and foreigners are net sellers with 0.5 billion KRW and 23.6 billion KRW respectively.
Among the top 10 KOSDAQ stocks by market capitalization, Alteogen (2.61%), Studio Dragon (2.14%), Pearl Abyss (1.23%), SK Materials (0.85%), and CJ ENM (0.35%) rose. Celltrion Pharm (-0.94%), EcoPro BM (-0.49%), Celltrion Healthcare (-0.44%), and Kakao Games (-0.36%) declined.
By sector, the rising sectors include Semiconductors (1.47%), Telecommunications Equipment (1.41%), Machinery/Equipment (1.24%), Publishing (1.01%), and Paper/Wood (0.91%). The declining sectors are Transportation (-0.37%), IT Components (-0.21%), Non-metallic Minerals (-0.16%), Chemicals (-0.11%), and Metals (-0.1%).
Meanwhile, the New York stock market declined despite the Federal Reserve (Fed), the U.S. central bank, maintaining a dovish stance. Although the Fed’s dovish mode lifted the market, it fell back late in the session following Chairman Jerome Powell’s remarks about a bubble.
On the 28th (Eastern Time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed down 164.55 points (0.48%) at 33,820.38. The Standard & Poor’s (S&P) 500 index fell 3.54 points (0.08%) to 4,183.18, and the tech-heavy Nasdaq index dropped 39.19 points (0.28%) to 14,051.03.
The market focused on the Fed’s monetary policy decision during the session. As expected, the Fed decided at this month’s Federal Open Market Committee (FOMC) meeting to keep the benchmark federal funds rate (FFR) at the zero level of 0.00?0.25%. It also maintained quantitative easing (QE) by continuing to purchase $120 billion in bonds monthly. Chairman Powell said at the press conference that it would take some time to achieve the Fed’s goals and that it was not yet time to start discussing tapering asset purchases.
U.S. long-term Treasury yields fell after Powell’s remarks. The 10-year Treasury yield plunged after 2:30 p.m. on the day of his speech, dropping to as low as 1.608% during the session.
However, some interpret the Fed’s upgraded economic assessment as signaling the first step toward tapering. The Fed added a new phrase in this month’s FOMC statement noting that "economic activity and employment indicators have strengthened due to expanded vaccinations and accommodative policies."
Powell also said, "Some asset prices are at high levels," and assessed that "there seems to be some bubble." Following his remarks, the S&P index, which had turned upward, reversed and declined again.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
