[Asia Economy Reporter Myung-Hwan Lee] The KOSPI is showing a rise of over 1.8% in the afternoon of the 20th, approaching the 2640 level. This is interpreted as a result of China's economic stimulus measures, including a 0.15 percentage point cut in the Loan Prime Rate (LPR), which serves as the de facto benchmark lending rate. While individual investors are increasing their selling pressure following the morning session, institutional investors are boosting their buying amounts.
As of 2 PM on this day, the KOSPI stands at 2638.37, up 46.03 points (1.78%) from the previous trading day. The KOSPI opened at 2605.78, up 13.44 points (0.52%), and has been gaining momentum in the afternoon. By investor type, individuals have sold off 788.8 billion KRW, engaging in large-scale selling, while foreigners and institutions have net bought 120.4 billion KRW and 668.2 billion KRW respectively.
The KOSPI's upward trend is attributed to improved investor sentiment following China's interest rate cut and other economic stimulus policies. The People's Bank of China (PBOC), China's central bank, announced a 0.15 percentage point reduction in the 5-year LPR from 4.6% to 4.45%. Since Chinese financial institutions use the average LPR as a benchmark for lending operations, the LPR functions as a de facto benchmark interest rate. The 5-year LPR serves as the basis for calculating mortgage loan rates, making it an indicator of China's commitment to stimulating the economy, including the real estate market.
All of the top 10 stocks by market capitalization on the Korea Exchange are rising. LG Chem stands out with a 7.77% increase (39,000 KRW), trading at 541,000 KRW. LG Energy Solution also rose 5.54% (23,000 KRW) compared to the previous day. Other gainers include ▲Samsung Electronics (0.74%) ▲SK Hynix (0.90%) ▲Samsung Biologics (1.51%) ▲Samsung Electronics Preferred Shares (0.83%) ▲Naver (1.47%) ▲Samsung SDI (2.03%) ▲Hyundai Motor (2.20%) ▲Kakao (3.23%).
By sector, non-metallic minerals (3.12%), chemicals (3.03%), and machinery (2.97%) are rising. Textiles and apparel (-0.44%) are slightly down.
At the same time, the KOSDAQ index is at 878.34, up 14.54 points (1.68%) from the previous day. The KOSDAQ opened at 866.76, up 2.96 points (0.34%), and the upward momentum intensified in the afternoon session. By investor type, individuals are net sellers of 131.1 billion KRW, while foreigners and institutions are net buyers of 74.5 billion KRW and 66.9 billion KRW respectively.
Most of the top market capitalization stocks are rising. Celltrion Healthcare is trading at 57,300 KRW, up 5.52% (3,000 KRW). Kakao Games also rose 5.18% (2,900 KRW), trading at 58,900 KRW. Other top gainers include ▲EcoPro BM (4.02%) ▲L&F (2.60%) ▲HLB (1.21%) ▲Pearl Abyss (4.69%) ▲Celltrion Pharm (4.19%). Cheonbo is trading at the same price as the previous day, 283,200 KRW.
By KOSDAQ sector, digital content (3.83%), metals (3.08%), and general electrical and electronics (2.64%) are on the rise. Only computer services (-0.41%) are declining.
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