The KOSPI ended the session with a rise of around 0.7%, influenced by the upward trend in the U.S. stock market. This was due to the retreat of fears of a domino effect of bankruptcies stemming from Silicon Valley Bank (SVB), Credit Suisse (CS), and First Republic Bank, which improved risk asset preference sentiment.
On the 17th, the KOSPI closed at 2395.69, up 0.75% (17.78 points) from the previous trading day. The index showed a strong rise of over 1% in the early session but narrowed its gains as individual investors sold heavily during the day. However, it ended the session with a rise of around 0.7% as foreign and institutional investors increased their net buying towards the close. On that day, foreign and institutional investors bought stocks worth 76 billion KRW and 79.6 billion KRW respectively, while individual investors sold stocks worth 175.1 billion KRW alone. The won-dollar exchange rate closed at 1302.2 KRW, down 10.8 KRW from the previous day, as concerns over bank bankruptcy issues eased.
With the bankruptcy issues in the financial sector temporarily settled due to active rescue plans by major U.S. banks, the outcome of the March Federal Open Market Committee (FOMC) meeting is crucial to predict future index trends. Experts say that while a 25 basis point rate hike is almost certain, it is important to watch the Federal Reserve's stance on the timing of rate cuts. Lee Kyung-min, a researcher at Daishin Securities, said, "The key is the scale of rate cuts in 2024 and 2025. If the rate cut scale (100bp) is expanded, it will be perceived as a strengthening of rate cuts and favorable for the stock market. If the rate cut scale is reduced, the upward pressure may increase differently from bond yields, so there is no need to rush to buy at this point."
Looking at the top market capitalization stocks, Samsung Electronics (2.34%) and SK Hynix (6.33%) showed strong performance that day. The news of Japan lifting semiconductor material export restrictions and expectations for improved performance in the second half of the year contributed to an upward trend. Samsung Biologics (2.28%), Hyundai Motor (1.49%), Kia (1.39%), and NAVER (0.46%) also rose, while LG Energy Solution (-3.99%), Samsung SDI (-2.44%), and LG Chem (-3.84%) declined.
The KOSDAQ index closed at 797.39, up 1.87% (15.41 points) from the previous trading day. The index started the session with a strong rise and showed gains of over 2% during the day, attempting to recover the 800 level. Both institutional and foreign investors showed net buying, which was effective. Foreign and institutional investors bought stocks worth 153.8 billion KRW and 100.3 billion KRW respectively, while individual investors sold stocks worth 236.6 billion KRW alone.
Among the top market capitalization stocks, Ecopro BM (-7.41%), Ecopro (-8.79%), and L&F (-6.13%) declined, while Celltrion Healthcare (6.13%), HLB (5.75%), Kakao Games (5.66%), Celltrion Pharm (18.66%), Pearl Abyss (4.76%), and SM (1.25%) rose.
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