FOMC Caution and Ukraine Concerns... 'Wavering' KOSPI Trades Around 2720 Level

On the 26th, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the KOSPI index opened at 2,929.75, up 9.36 points (0.34%) from the previous session. The won-dollar exchange rate started at 1,196.9 won, down 1.7 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Minji Lee] The KOSPI and KOSDAQ indices have been fluctuating between gains and losses throughout the morning, struggling to find a clear direction. This increased volatility is attributed to unstable supply and demand following the FOMC (Federal Open Market Committee) results and the listing impact of LG Energy Solution.

As of 10:48 AM on the 26th, the KOSPI stood at 2,723.92, up 0.13% (3.53 points) from the previous trading day. The KOSPI opened at 2,729.75, up 0.34% (9.36 points) from the previous day, and initially rose to the 2,740 level, an increase of 0.8%, but then turned downward before rising again, showing high volatility. Looking at investor trends, foreigners sold stocks worth 139.5 billion KRW, and individuals also net sold 1.9 billion KRW. Institutions were the sole buyers, purchasing stocks worth 138.5 billion KRW.

By sector, the medical precision industry rose 3.38%, followed by banks (2.08%), transportation and warehousing (1.73%), securities (1.16%), and finance (1.08%). Among the medical precision sector, SD Biosensor rose about 5%, with market sentiment expanding due to expectations of strong performance driven by the Omicron variant.

Among the top market capitalization stocks, Samsung Electronics was down 0.27% from the previous day at 73,800 KRW. NAVER (-2.17%), Samsung Biologics (-1.41%), Samsung SDI (-0.78%), Hyundai Motor (-2.06%), Kakao (-0.34%), and Kia (-0.13%) also declined. On the other hand, SK Hynix (0.42%) and LG Chem (2.49%) rose.

The KOSDAQ index stood at 893.73, up 0.48% (4.29 points) from the previous trading day. The index opened at 892.01, up 0.29% (2.57 points), fluctuated between gains and losses, and at one point showed an increase of over 1%. Looking at investor trends, foreigners and institutions bought stocks worth 22.4 billion KRW and 41 billion KRW respectively, while individuals were net sellers of 65.4 billion KRW.

By sector, computer services (2.63%), digital content (2.30%), information devices (2.01%), and construction (1.87%) showed upward trends. Among the top market capitalization stocks, Celltrion Healthcare (-0.31%), Pearl Abyss (-2.76%), L&F (-1.55%), Celltrion Pharm (-0.7%), Seegene (-0.34%), and Chunbo (-2.18%) declined, while EcoPro BM (0.52%), Kakao Games (2.03%), Wemade (10.49%), and HLB (0.16%) rose.

Seosangyoung, a researcher at Kiwoom Securities, said, “Today’s market showed increased expectations for a shift to an earnings-driven market as changes began in individual stocks and related sectors following earnings announcements in the U.S. market. However, concerns about escalating U.S.-China tensions arose after the U.S. House of Representatives finalized a China-related bill including provisions on semiconductors and Taiwan, which is believed to have affected market investor sentiment.”