Foreign and Institutional Buying Pushes KOSPI Up 1%... Won-Dollar Exchange Rate Plummets 11.9 Won (Comprehensive)

[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.

[Image source=Yonhap News]

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 the gains. Foreigners and institutions bought stocks worth approximately 109.4 billion KRW and 52.8 billion KRW respectively, driving the upward trend. Meanwhile, individual investors sold a net amount of 220.2 billion KRW alone.

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 expected after 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. The Dow Jones Industrial Average closed at 34,092.96, up 6.92 points (0.02%) from the previous session. The large-cap S&P 500 index ended at 4,119.21, up 42.61 points (1.05%). The Nasdaq index closed at 11,816.32, up 231.77 points (2.0%).

The won-dollar exchange rate showed a sharp decline. As of 9:43 a.m., it recorded 1,219.4 won, down 11.9 won.

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

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