KOSPI Closes Up 1.07%... Exchange Rate Falls Below 1300 Won

Improved Investor Sentiment Amid SVB Crisis Resolution
Domestic Bank Stocks Close Higher Across the Board

The KOSPI and KOSDAQ closed higher. The swift resolution of the Silicon Valley Bank (SVB) crisis and news that U.S. financial authorities are considering additional liquidity support for First Republic Bank eased concerns about a banking crisis, which is interpreted as having somewhat improved domestic investor sentiment.

On the 28th, the KOSPI closed at 2434.94, up 1.07% (25.72 points) from the previous day. The KOSPI opened at 2418.69, up 0.39% (9.47 points) from the previous day.

[Image source=Yonhap News]

Institutions alone led the rise with net purchases of 321.6 billion KRW. Individuals and foreigners net sold 277.3 billion KRW and 42.3 billion KRW, respectively. Individuals were buyers early in the session but turned to sellers later. In the futures market, foreigners alone bought 668.4 billion KRW worth. Individuals and institutions sold 210.9 billion KRW and 418.7 billion KRW, respectively.

Among the top 10 stocks by market capitalization, most showed gains. SK Hynix closed up 3.39%. This was followed by POSCO Holdings +2.11%, Samsung Electronics +1.29%, LG Chem +0.86%, and LG Energy Solution +0.52%. Meanwhile, Samsung Biologics closed flat, and only Samsung SDI fell by 0.14%.

The KOSDAQ closed at 833.51, up 0.70% (5.82 points) from the previous day. It opened at 831.07, up 0.41% (3.38 points), and maintained its upward trend. The KOSDAQ was driven by individuals and institutions, who net bought 105 billion KRW and 49.4 billion KRW, respectively. In contrast, foreigners net sold 138.2 billion KRW.

Among the top 10 stocks by market capitalization on the KOSDAQ, most declined. Celltrion Pharm was the biggest loser, plunging 12.20%. This was followed by Celltrion Healthcare -7.63%, EcoPro -1.25%, and EcoPro BM -0.88%. On the other hand, JYP Entertainment surged 7.21%. Additionally, Kakao Games +1.48%, Pearl Abyss +0.22%, and HLB +0.15% closed higher.

Jae-hyuk Han, a researcher at Hana Securities, explained, "The domestic stock market closed higher as concerns eased following the acquisition of SVB Bank the previous day. However, funds were dispersed due to corrections in secondary battery-related stocks that had rallied for a long time, leading to various investment opportunities and relatively weak performance in the KOSDAQ."

Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate fell below 1300 won for the first time in a day. The rate closed at 1298.8 won, down 2.7 won from the previous day.