The KOSPI index surpassed the 2600 mark as buying momentum from foreigners and institutions continued. It is the first time since June 9 of last year that the index closed above 2600.
On the 2nd, the KOSPI index closed at 2601.36, up 32.19 points (1.25%) from the previous trading day. It was the first rise in three trading days and the first time in over a year that the closing price exceeded 2600. The index started at 2586.27, up 17.10 points (0.67%), and then extended its gains. Although individuals sold about 570 billion KRW, foreigners and institutions net bought approximately 374.1 billion KRW and 197.7 billion KRW, respectively.
Among the top market capitalization stocks, LG Chem rose 4.95%, POSCO Holdings 4.29%, Samsung Electronics 1.83%, Kia 1.19%, Hyundai Motor 1.01%, Samsung SDI 0.99%, LG Energy Solution 0.68%, and NAVER 0.25%. SK Hynix remained flat, and Samsung Biologics fell 0.38%. POSCO Future M, which plans to expand its North American joint venture investment in cathode materials and precursors, key battery materials, and strengthen supply chain cooperation with General Motors (GM), also rose 4.03%.
By sector, steel and metals recorded the largest gain, rising more than 3%. This was followed by chemicals (2.41%), textiles and apparel (2.15%), securities (1.82%), machinery (1.76%), insurance (1.63%), electrical and electronics (1.48%), and manufacturing (1.45%). Medical precision (-1.18%), pharmaceuticals (-0.46%), electric and gas utilities (-0.30%), and transportation and warehousing (-0.26%) declined.
Kim Seok-hwan, a researcher at Mirae Asset Securities, explained, "Risk appetite recovered due to the US debt ceiling negotiations and expectations for a rate freeze in June." He added, "The won-dollar exchange rate also fell by more than 16 won, dropping below 1310 won for the first time since April this year." He further noted, "The expansion of foreign net buying and the simultaneous strength in Asian stock markets such as Japan, China, and Hong Kong were also positive for investor sentiment."
On the 1st (local time), the US federal government debt ceiling agreement passed the Senate following approval in the House. The US Senate approved the agreement with 63 votes in favor and 36 against. The agreement postpones the federal government debt ceiling until January 2025, while maintaining non-defense spending at freeze levels for the 2024 fiscal year starting in October this year and increasing military spending by about 3%.
With concerns about a US default eliminated, the won-dollar exchange rate closed at 1305.7 won, down 15.9 won from the previous day.
The KOSDAQ index closed at 868.06, up 4.28 points (0.50%) from the previous trading day. Individuals and foreigners sold about 36.1 billion KRW and 30.1 billion KRW, respectively, while institutions bought 95.8 billion KRW.
Among the top market capitalization stocks, Pearl Abyss rose 2.94%, EcoPro BM 2.20%, JYP Ent. 1.10%, EcoPro 0.89%, HLB 0.53%, L&F 0.38%, and Osstem Implant 0.11%. Celltrion Pharm fell 0.23%, while Celltrion Healthcare and Kakao Games remained flat.
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