[Asia Economy Reporter Kwon Jae-hee] The KOSPI closed up over 1% on the 2nd early morning, buoyed by foreign investors' buying ahead of the U.S. Federal Open Market Committee (FOMC) results.
On that day, the KOSPI index closed at 2449.80, up 1.02% (24.72 points) from the previous trading day. The index opened at 2446.03, up 0.86% (20.95 points) from the previous close, fluctuated throughout the session, and expanded its gains toward the close.
In the KOSPI market that day, foreign investors, who had held a selling position the previous day, switched to net buying of 194.5 billion KRW, driving the KOSPI index higher. Meanwhile, individual and institutional investors net sold stocks worth 16.3 billion KRW and 195.7 billion KRW, respectively.
On the previous day in the U.S. New York stock market, the Dow Jones Industrial Average (1.09%), Standard & Poor's (S&P) 500 Index (1.46%), and Nasdaq Index (1.67%) all rose together, improving risk appetite.
The news that the U.S. Employment Cost Index (ECI) for the fourth quarter of last year rose 1.0% quarter-on-quarter, slightly below the previous quarter's increase (1.2%) and expectations (1.1%), raised hopes that the pace of U.S. interest rate hikes would slow down, which also had an impact.
Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "Although caution about the FOMC results remains, the expectation that the U.S. will slow the pace of interest rate hikes has increased, leading to gains in the domestic stock market on that day."
Among the top 10 KOSPI stocks by market capitalization, all closed higher except LG Chem (-0.29%). These include Samsung Electronics (1.31%), LG Energy Solution (0.19%), SK Hynix (3.28%), Samsung Biologics (1.39%), Samsung SDI (5.11%), Samsung Electronics Preferred (2.00%), Hyundai Motor (1.80%), NAVER (1.48%), and Kia (4.04%).
By sector, securities (2.94%), pharmaceuticals (2.14%), transportation equipment (1.80%), transportation and warehousing (1.53%), electrical and electronics (1.43%), manufacturing (1.17%), finance (1.08%), and insurance (1.04%) recorded gains. Conversely, telecommunications (-1.20%), electric and gas (-0.72%), construction (-0.60%), food and beverage (-0.42%), textiles and apparel (-0.41%), and non-metallic minerals (-0.16%) declined.
The KOSDAQ index closed at 750.96, up 1.41% (10.47 points) from the previous trading day. The index opened at 744.90, up 0.60% (4.41 points), fluctuated during the session, and expanded its gains.
By investor type, individuals alone net sold stocks worth 225.5 billion KRW, while foreign and institutional investors bought stocks worth 202.2 billion KRW and 67.0 billion KRW, respectively.
Among the top 10 KOSDAQ stocks by market capitalization, all closed higher except JYP Ent. (-0.55%). These include EcoPro BM (9.42%), Celltrion Healthcare (5.42%), L&F (2.43%), Kakao Games (1.19%), HLB (4.61%), EcoPro (4.56%), Pearl Abyss (0.55%), Osstem Implant (0.11%), and Reno Industrial (1.35%).
By sector, general electrical and electronics (5.41%), telecommunications equipment (3.61%), pharmaceuticals (2.87%), distribution (2.48%), other services (1.86%), finance (1.82%), and manufacturing (1.78%) closed higher, while telecommunications services (-2.22%), computer services (-0.63%), internet (-0.61%), publishing/media reproduction (-0.53%), and publishing/broadcasting services (-0.46%) closed lower.
During the day, the trading value on the KOSPI and KOSDAQ markets was 8.5291 trillion KRW and 8.6682 trillion KRW, respectively.
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