'Positive Reaction to Powell's Remarks' KOSPI Starts Higher... KOSDAQ Turns Lower

Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), reaffirmed the 'possibility of a rate cut within the year,' as the KOSPI opened higher on the 7th.

Photo by Younghan Heo younghan@

As of 9:38 a.m. that day, the KOSPI index was trading at 2,647.60, up 6.11 points (0.23%) from the previous trading day. The index started at 2,653.98, up 12.49 points (0.47%), but the gains have been narrowing. Foreign investors sold 90 billion KRW, institutions sold 11.9 billion KRW, while individuals alone bought 99.3 billion KRW.

Among the top market capitalization stocks, Samsung SDI (3.02%), Samsung Life Insurance (2.80%), Samsung Biologics (2.68%), Hana Financial Group (1.52%), Kakao (1.16%), Samsung C&T (0.86%), and KB Financial Group (0.57%) are rising. In contrast, Shinhan Financial Group (-1.43%), LG Chem (-0.79%), and Samsung Electronics (-0.14%) are declining.

By sector, insurance (2.25%), pharmaceuticals (1.30%), finance (0.84%), transportation and warehousing (0.73%), and services (0.45%) are rising. On the other hand, medical precision (-1.45%), electric and gas utilities (-1.25%), textiles and apparel (-1.10%), food and beverages (-0.53%), and chemicals (-0.50%) sectors are falling.

On the 6th (local time) at the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average closed at 38,661.05, up 75.86 points (0.2%) from the previous trading day. The large-cap S&P 500 index rose 26.11 points (0.51%) to 5,104.76, and the Nasdaq index closed at 16,031.54, up 91.96 points (0.58%).

Powell, appearing before the U.S. House Financial Services Committee's semiannual monetary policy report that day, maintained his previous stance that "he will not rush to cut rates until there is confidence that inflation has entered the 2% range due to the economy's strength." This was interpreted by the market as a reaffirmation of the possibility of a rate cut within the year, positively influencing stock prices.

At the same time, the KOSDAQ index fell 2.10 points (0.24%) to 868.57 compared to the previous session. The index started at 874.30, up 3.63 points (0.42%), but then turned downward. Foreign investors sold 94.4 billion KRW, institutions sold about 39.4 billion KRW, while individuals bought about 173.2 billion KRW.

Among the top market capitalization stocks, Juseong Engineering (3.35%), Samchundang Pharmaceutical (2.59%), and Classys (2.19%) are rising. Conversely, Enchem (-4.28%), JYP Entertainment (JYP Ent.) (-3.61%), LegoChem Biosciences (-3.09%), and EO Technics (-1.94%) are declining.