[Asia Economy Reporter Myunghwan Lee] The KOSPI continued its upward trend in the morning session on the 1st. The KOSPI surpassed the 2,500 mark intraday for the first time in about three months after Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), hinted at a slowdown in the pace of interest rate hikes. However, the gains narrowed following news that domestic exports in November declined for the second consecutive month.
As of 10:56 a.m., the KOSPI stood at 2,485.79, up 0.54% (13.26 points) from the previous trading day. The KOSPI opened at 2,501.43, up 1.17% (28.90 points) from the previous day. This marks the first intraday break above 2,500 since August 19, about three months ago. Since then, the upward momentum has slowed, with the index fluctuating around the 2,480 level.
The index's rise appears to have been partially dampened by news that domestic exports recorded a negative growth for two consecutive months. The Ministry of Trade, Industry and Energy announced on the 1st that November exports totaled $51.91 billion, down 14.0% from the same month last year ($60.33 billion). This marks a decline in export value for two consecutive months following October. The trade balance also recorded a deficit of $7.01 billion (approximately 9.1 trillion KRW).
In the KOSPI market, institutional and foreign investors are leading the index's rise with net purchases exceeding 100 billion KRW. Institutions and foreigners bought stocks worth 110.6 billion KRW and 100.1 billion KRW, respectively. In contrast, individual investors sold stocks worth 215.6 billion KRW, realizing profits.
Most of the top market capitalization stocks are also on the rise. NAVER, a representative growth stock, is trading at 192,000 KRW, up 2.67% (5,000 KRW) from the previous day. Semiconductor stocks such as Samsung Electronics (0.96%), SK Hynix (0.82%), and Samsung Electronics Preferred Shares (1.61%) are all rising. Meanwhile, LG Chem (-1.08%), LG Energy Solution (-1.02%), and Samsung Biologics (-0.23%) are declining.
Looking at the KOSPI sector indices, the construction sector rose sharply by 2.88% compared to the previous day, while securities (1.59%) and services (1.45%) sectors are also gaining. Insurance (-0.82%) and electric and gas utilities (-0.39%) sectors are declining.
At the same time, the KOSDAQ index stands at 742.76, up 1.81% (13.22 points) from the previous day. The KOSDAQ opened at 740.97, up 1.57% (11.43 points) from the previous day, and has maintained its upward momentum.
In the KOSDAQ market, institutional and foreign investors are showing net buying with purchases of 171.7 billion KRW and 105.1 billion KRW, respectively. Individuals sold stocks worth 269.5 billion KRW.
All of the top market capitalization stocks in KOSDAQ are rising. HLB is up sharply by 4.15% (1,350 KRW) to 33,900 KRW. Pharmaceutical and bio-related stocks such as Celltrion Pharm (3.91%) and Celltrion Healthcare (2.15%) are also rising. Gaming stocks like Pearl Abyss (2.99%) and Kakao Games (1.84%) are gaining as well.
KOSDAQ sector indices are mostly rising as well. Similar to the KOSPI market, the construction sector is showing strong gains at 3.64%, along with entertainment culture (2.70%), other services (2.66%), and digital content (2.19%).
The domestic stock market's rise today appears to be influenced by the previous day's gains in major U.S. stock indices in New York. The U.S. market closed sharply higher, with the Nasdaq rising 4.41%, after Fed Chairman Powell hinted at a possible slowdown in the pace of interest rate hikes.
In a speech at the Brookings Institution the day before, Chairman Powell said, "The time to slow the pace of rate hikes could come as early as December," suggesting that the Federal Open Market Committee (FOMC) regular meeting next month might decide on a big step (0.50 percentage point increase) rather than a giant step (0.75 percentage point increase) in the benchmark interest rate.
Seosangyoung, Head of Media Content at Mirae Asset Securities, said before the market opened, "The Nasdaq's sharp 4.4% surge, driven by Powell's less hawkish remarks, is expected to have a positive impact on the domestic stock market." However, he also noted, "The expected negative growth in November Korean exports is likely to raise concerns about a slowdown in corporate profits going forward, which could be a burden."
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