Foreign and Institutional Dual Buying Drives KOSPI Up 1%... February FOMC Tailwind

[Asia Economy Reporter Lee Jung-yoon] As the U.S. Federal Reserve (Fed) raised the benchmark interest rate by 0.25 percentage points at the February Federal Open Market Committee (FOMC) meeting as expected, signaling a slowdown, the domestic stock market is also on the rise.

As of 9:24 a.m. on the 2nd, the KOSPI index was trading at 2,478.19, up 28.39 points (1.16%) from the previous trading day. The index opened at 2,481.94, up 32.14 points (1.31%) but gave up some of its gains. Foreigners and institutions bought stocks worth approximately 109.4 billion KRW and 52.8 billion KRW respectively, driving the upward trend. Meanwhile, individuals sold a net amount of 220.2 billion KRW alone.

[Image source=Yonhap News]

Among the top market capitalization stocks, Kakao recorded the largest gain, rising more than 3%. Samsung Electronics (2.75%), Naver (2.68%), and SK Hynix (2.63%) also showed gains in the 2% range. LG Chem (-0.29%) was the only stock to decline.

By sector, the strongest performers were electric and electronics (1.97%), services (1.78%), manufacturing (1.43%), and securities (1.40%). Insurance (-0.80%), distribution (-0.15%), and food and beverage (-0.07%) sectors were weak.

On the 1st (local time), the U.S. stock market rose across the board as the Fed raised the benchmark interest rate by 0.25 percentage points from 4.25-4.5% to 4.5-4.75% at this year’s first FOMC meeting, as expected. The Dow Jones Industrial Average closed at 34,092.96, up 6.92 points (0.02%) from the previous session. The S&P 500, focused on large-cap stocks, ended at 4,119.21, up 42.61 points (1.05%). The Nasdaq closed at 11,816.32, up 231.77 points (2.0%).

At the same time, the KOSDAQ index rose 10.88 points (1.45%) to 761.84. Foreigners and institutions net bought stocks worth approximately 31.9 billion KRW and 46.5 billion KRW respectively, while individuals net sold about 70.3 billion KRW.

Most of the top market capitalization stocks showed gains. L&F rose 4.03%, recording the largest increase, followed by EcoPro BM (3.02%), Pearl Abyss (2.09%), and EcoPro (2.02%). Osstem Implant remained flat.