KOSPI index, which started lower following multiple remarks by Jerome Powell, Chair of the U.S. Federal Reserve (Fed), stating there would be no interest rate cuts, narrowed its losses and eventually turned positive, reclaiming the 2400 level by the close.
On the 23rd, the KOSPI closed at 2424.48, up 0.31% (7.52 points) from the previous trading day. The index opened at 2398.27, down 0.77% (18.69 points) at the start of the session.
Net buying by foreigners and institutions drove the KOSPI's rise. Foreigners and institutions purchased stocks worth 214.3 billion KRW and 215.1 billion KRW respectively. Notably, foreigners bought about 100 billion KRW worth of shares in the last 10 minutes before the market closed. Conversely, individual investors sold stocks worth 412.2 billion KRW, realizing profits.
In the Seoul foreign exchange market, the won/dollar exchange rate opened at 1298.0 KRW, down 9.7 KRW from the previous day, fluctuating below 1300 KRW. It ultimately closed at 1278.3 KRW, down 29.4 KRW from the previous close.
The KOSPI showed weakness early in the session after Fed Chair Powell ruled out the possibility of interest rate cuts within the year on the 22nd (local time). On the same day, U.S. Treasury Secretary Janet Yellen’s statement that there was no consideration of "comprehensive insurance" protecting all deposits also heightened market anxiety.
However, attention shifted to the Federal Open Market Committee (FOMC) dot plot, an indicator showing members’ interest rate hike expectations, which maintained the year-end rate forecast median at 5.1%, unchanged from before. This led to a prevailing view that this FOMC was accommodative, reviving risk appetite during the session.
Heo Jin-wook, a researcher at Samsung Securities, commented, "The unchanged dot plot signals that the Fed’s rapid rate hikes, ongoing for over a year, are likely to end with a 0.25 percentage point increase in May. This FOMC marks the peak of the Fed’s tightening stance, and as we move through the second quarter, market and Fed focus will shift from inflation to the economy."
Among the top 10 market cap stocks, all closed higher except Samsung Biologics (-1.48%), NAVER (-1.45%), and Kia (-0.63%). Samsung Electronics (1.96%), LG Energy Solution (0.35%), SK Hynix (1.84%), Samsung SDI (1.91%), LG Chem (1.28%), Samsung Electronics Preferred (0.19%), and Hyundai Motor (0.11%) all ended up.
By sector, electronics (3.14%), services (3.05%), electric and gas utilities (2.76%), steel and metals (2.39%), and manufacturing (2.22%) recorded gains, while construction (-2.55%), non-metallic minerals (-1.86%), machinery (-1.35%), and insurance (-0.96%) declined.
The KOSDAQ index closed down 0.15% (1.25 points) at 812.19, having opened at 807.53, down 0.73% (5.90 points).
Similarly, foreigners and institutions were net buyers on the KOSDAQ, while individuals were net sellers. Foreigners bought 107.4 billion KRW, institutions 63.2 billion KRW, and individuals sold 161.3 billion KRW.
Among the top 10 market cap stocks, secondary battery-related stocks stood out. EcoPro BM (10.07%), EcoPro (0.44%), and L&F (4.38%) recorded gains.
Secondary battery-related stocks also dominated the top three in KOSDAQ trading volume. EcoPro BM alone saw trading volume of 2.1773 trillion KRW in one day, followed by EcoPro with 1.1689 trillion KRW and L&F with 639.6 billion KRW.
Other notable stocks included Celltrion Healthcare (-2.28%), HLB (-2.95%), Celltrion Pharm (-3.12%), Kakao Games (-3.19%), Osstem Implant (-0.11%), and Pearl Abyss (-5.12%).
By sector, most recorded gains, including machinery equipment (8.57%), other manufacturing (8.31%), metals (7.88%), general electronics (7.81%), and semiconductors (7.52%).
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