Governor Lee Chang-yong Predicts Final Benchmark Interest Rate at 3.5% "Same View"
Overseas Futures Rebound in U.S. After-Hours, Foreigners Increase Net Buying
On the 11th, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the KOSPI index opened at 2193.02, down 39.82 points (1.78%) from the previous trading day. The won-dollar exchange rate opened at 1428.0, up 15.6 won. Photo by Moon Honam munonam@
[Asia Economy Reporter Junho Hwang] On the 12th, the Bank of Korea raised the base interest rate by 0.50 percentage points, a 'big step,' for the first time in three months through the Monetary Policy Committee, but the stock market instead rose. This is analyzed as a result of continued net buying by foreigners following Bank of Korea Governor Lee Chang-yong's remarks that the final base interest rate level is expected to be 3.5%, along with news that the U.S. government has postponed export control measures on Samsung Electronics and SK Hynix's factories in China for one year.
As of 2:03 p.m. on the day, the KOSPI recorded 2201.29, up 0.42% from the previous session. The KOSPI, which had fallen below the 2200 level the day before, is maintaining the 2200 level as foreigners continue net buying. At this time, foreigners showed a net buying intention worth 182 billion KRW. Individuals, who had shown net buying intentions throughout the morning, realized profits worth 60.4 billion KRW, while institutional net selling increased to 132.6 billion KRW.
Among all stocks, 398 stocks showed an upward trend. Most of the top market capitalization stocks are also recording gains. Samsung Electronics, the unchanging market leader, is pointing to 55,900 KRW, up 0.90% from the previous session. SK Hynix, also a semiconductor stock, recorded 92,800 KRW, up 2.88%. The rise appears to be due to news that the U.S. government, which banned semiconductor equipment exports to China, has allowed Samsung Electronics and SK Hynix's local factories in China to import equipment for one year without applying for U.S. government approval. On the other hand, LG Energy Solution, which showed gains the day before, fell 2.11%, and LG Chem (-1.51%) is also declining.
By industry, most sectors turned to an upward trend. Notable increases include textiles and apparel (1.50%), pharmaceuticals (1.42%), construction (1.34%), and steel and metals (0.99%). Among the textile and apparel sector, Hanse Industrial (4.64%), Jeonbang (4.02%), and Banglim (3.50%) showed larger gains compared to other sectors.
The KOSDAQ, which showed mixed trends in the morning, recorded 672.33, up 0.42%. Following individuals (56.3 billion KRW), institutions (24.3 billion KRW) also engaged in net buying, pushing the index up. Foreigners showed a net selling intention worth 88 billion KRW.
Among the top market capitalization stocks, JYP ENT. (4.32%), EcoPro (3.74%), and EcoPro BM (2.03%) showed noticeable gains. By industry, the entertainment sector rose 1.32%, showing the highest increase. Besides JYP, Cube Entertainment (5.10%), Wysiwyg Studios (3.51%), and SM (3.73%) also showed upward trends.
Lee Kyung-min, a researcher at Daishin Securities, analyzed, "The KOSPI reversed to an upward trend thanks to the U.S. after-hours futures rebound and the inflow of foreign net buying centered on semiconductors," adding, "The won-dollar exchange rate also fell below 1430 won in the afternoon, and the stock market is expanding its gains in the afternoon."
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