KOSPI up 15.78 points (0.65%) from previous day at 10:15 AM, standing at 2442.67
The KOSPI opened at 2,441.21, up 14.32 points (0.59%) from the previous trading day, on the 30th at the Hana Bank dealing room in Jung-gu, Seoul. In the Seoul foreign exchange market, the won-dollar exchange rate started at 1,346.0 won, down 4.4 won. Photo by Hyunmin Kim kimhyun81@
[Asia Economy Reporter Ji Yeon-jin] On the 30th, the domestic stock market recovered from the 'Jackson Hole shock' in just one day. The upward trend of the won-dollar exchange rate, which had surged to 1350 won the previous day, somewhat eased, leading to a slowdown in institutional selling.
The KOSPI index was trading at 2442.67, up 15.78 points (0.65%) from the previous day as of 10:15 a.m. The index, which had closed lower due to the hawkish Jackson Hole shock the day before, recovered the 2440 level (2441.21) from the market opening and slightly expanded its gains.
The domestic stock market showed weakness following the sharp global market decline triggered by Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), stating on the 26th (local time) that the tightening stance would be maintained until inflation is controlled. However, on this day, individual investors started buying at low prices from the early session, and institutions, which had sold heavily the previous day, switched to buying, pushing the index up. Individuals were net buyers worth 102.2 billion won in the morning session, and institutions, which showed a selling bias early in the session, were also net buyers of 20.3 billion won. The won-dollar exchange rate, which had fueled institutional selling the previous day, fell by 4.7 won (0.36%) to 1345.7 won. However, foreign investors were net sellers of about 135.3 billion won in the KOSPI market, showing a selling bias for the first time in ten days, which limited the index's gains.
Han Ji-young, a researcher at Kiwoom Securities, evaluated, "The domestic stock market plunged the previous day due to the U.S. stock market crash after the Jackson Hole meeting and the won-dollar exchange rate surge exceeding 1350 won for the first time in 13 years. Today, despite the aftershocks of Jackson Hole, the market attempted a rebound, supported by the perception of an excessive drop and the easing of the exchange rate surge."
Among the top market capitalization stocks in KOSPI, LG Energy Solution showed a strong gain of 1.85%, and Hyundai Motor (2.92%) and Kia Motors (2.32%) were also rising. SK Hynix, LG Chem, NAVER, and Kakao also recorded gains. On the other hand, Samsung Electronics showed weakness for the second consecutive day (-0.34%) due to foreign selling, and Samsung Biologics fell 0.24%, while Samsung SDI dropped 0.87%.
Korea Zinc showed nearly a 5% gain in the early session on expectations of separation from the Youngpoong Group but turned to a slight gain as profit-taking selling poured in later. Hankook Tire & Technology continued its rise in the 4% range on news of factory expansion in Tennessee, USA.
At the same time, the KOSDAQ index rose 10.90 points (1.40%) to recover the 790 level. The KOSDAQ index had fallen 22.56 points (2.81%) the previous day, breaking below 800, but succeeded in rebounding in just one day. Individuals showed a buying bias early in the session but were net sellers of about 100 million won, and foreigners were also net sellers of about 3 billion won. Institutions were net buyers of 6.7 billion won.
All top market capitalization stocks in KOSDAQ were on the rise. In particular, L&F recorded a gain of over 3%, and Pearl Abyss showed a 3.41% increase. In addition, Celltrion Healthcare and EcoPro were up more than 2%, and EcoPro BM (0.8%), ㎥ (1.32%), Kakao Games (1.96%), and Celltrion Pharm (1.46%) were also rising.
In the KOSDAQ market on this day, NFC, a cosmetics material specialist company, announced that it signed a memorandum of understanding (MOU) with Anewcos, a cosmetics company under CITIC, the largest state-owned capital enterprise in China, to expand overseas market channels, showing a rise of nearly 20%. Hankook McNulty also showed a nearly 20% increase on news of the largest shareholder considering selling shares.
Seo Sang-young, a researcher at Mirae Asset Securities, said, "Powell's remarks are not new but are consistent with what many Fed officials, including the most dovish Minneapolis Fed President Neel Kashkari, have mentioned. It is important to note this point," adding, "Although the stock market temporarily increased volatility, the likelihood of this trend continuing is limited."
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