[Good Morning Stock Market] "Exchange Rate Rebound and Weak Supply-Demand... KOSPI Expected to Show Limited Movement"

On the 19th, the KOSPI is expected to show limited movement as the exchange rate rebounds and the supply-demand sluggishness continues.

On the 17th, the status board in the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, displayed the KOSPI, KOSDAQ indices, and the won/dollar exchange rate. On that day, the KOSPI opened at 619.15, up 9.52 points (0.36%) from the previous session, and the KOSDAQ index started at 839.3, rising 6.49 points (0.78%) from the previous trading day. The won/dollar exchange rate began at 1,390.0 won, down 4.5 won from the previous day. Photo by Jo Yongjun jun21@

The three major indices of the New York stock market closed mixed on the 18th (local time). On that day at the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average rose 22.07 points (0.06%) from the previous trading day to close at 37,775.38. The large-cap-focused S&P 500 index fell 11.09 points (0.22%) to 5,011.12, and the tech-heavy Nasdaq index dropped 81.87 points (0.52%) to close at 15,601.5. As a result, the S&P 500 and Nasdaq indices continued their decline for the fifth consecutive trading day.

Market caution appears to have increased as Federal Reserve (Fed) Chair Jerome Powell effectively hinted at a delay in interest rate cuts, and a Fed official stated that rate hikes could be implemented if necessary.

In the domestic market the previous day, the won-dollar exchange rate, which had surged to 1,400 won, somewhat stabilized, leading to a return of foreign investors. Thanks to foreign buying, the KOSPI index closed at 2,634.70 on the 18th, up 50.52 points (1.95%) from the previous day.

Hi Investment & Securities analyzed, "Despite the weak U.S. stock market, the domestic market closed higher as bargain buying emerged amid perceptions that the recent decline was excessive. In particular, the won-dollar exchange rate, which had been a recent variable in the financial market, fell as discussions on exchange rate stabilization were held under the G7 finance ministers' consultation, which played a significant role."

On this day, the KOSPI is expected to see a recurrence of the exchange rate rebound and supply-demand sluggishness. Ji-won Kim, a researcher at KB Securities, said, "With the dollar strength and government bond yields rising again in just one day, the domestic market is likely to experience a recurrence of exchange rate rebound and supply-demand sluggishness. Meanwhile, big tech earnings are not acting as momentum due to concerns about future outlooks, and cautious sentiment ahead of the weekend is expected to be highlighted."

Ji-young Han, a researcher at Kiwoom Securities, predicted, "The domestic market is expected to show limited movement due to TSMC and Netflix falling in after-hours trading and the previous day's sharp rise of over 2%."