The 'American Spring Breeze' Blowing into the Domestic Stock Market... KOSPI Recovers to the 2700 Level

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The domestic stock market showed an upward trend in the early session on the 17th as relief spread that uncertainty was resolved following the US interest rate hike.

At 9:10 a.m. on the 17th, the KOSPI was at 2702.84, up 1.64% (43.61 points) from the previous trading day. The KOSPI opened at 2703.27, up 1.66% (44.04 points) from the previous close. This is the first time in eight trading days since the 4th of this month that the KOSPI has recovered the 2700 level. Institutions led the rise with net purchases of 168.7 billion KRW, while individuals and foreigners net sold 142.5 billion KRW and 24.5 billion KRW, respectively.

On this day, the domestic stock market showed strength as the US Federal Reserve raised the benchmark interest rate for the first time in 3 years and 3 months, but uncertainty was removed, leading to a sharp rise in the US stock market. Following the Federal Open Market Committee (FOMC) regular meeting, the Fed raised the benchmark interest rate by 0.25 percentage points as expected by the market. Additionally, the dot plot indicating future rate projections suggested six more 0.25 percentage point rate hikes in the remaining FOMC meetings.

However, with Fed Chair Jerome Powell's remarks that the US economy remains strong, the Dow Jones Industrial Average rose 1.55%, the Standard & Poor's (S&P) 500 index increased by 2.24%, and the tech-heavy Nasdaq index closed up 3.77%. Furthermore, expectations for a ceasefire rose as Ukraine and Russia announced they are preparing a peace plan consisting of 15 articles.

All of the top market capitalization stocks recorded gains. SK Hynix showed the largest increase, rising 4.29%. This was followed by LG Energy Solution (4.13%), LG Chem (3.85%), Naver (3.18%), Samsung SDI (2.81%), Kakao (2.4%), Hyundai Motor (2.38%), Samsung Electronics (1.7%), Samsung Biologics (1.45%), and Kia (1.39%).

By sector, electricity and electronics (2.16%), chemicals (2.11%), services (2.04%), large-cap stocks (1.86%), and manufacturing (1.81%) rose. Meanwhile, electric and gas utilities (-0.36%), construction (-0.25%), and textiles and apparel (-0.09%) declined.

At the same time, the KOSDAQ index also rose 1.75% (15.59 points) from the previous close to 907.39. The KOSDAQ also recovered the 900 level for the first time in eight trading days. Institutions and individuals net bought 22.9 billion KRW and 7.9 billion KRW, respectively, while foreigners net sold 25.2 billion KRW.

Among the top market capitalization stocks, secondary battery-related companies EcoPro BM and L&F showed strong gains, rising 5.48% and 4.54%, respectively. This was followed by Wemade (4.32%), Celltrion Pharm (3.49%), Cheonbo (3.36%), Kakao Games (3.19%), and Celltrion Healthcare (2.89%).