KOSPI Ends Slightly Lower After Smoothly Digesting Powell's Remarks

On the 2nd, the KOSPI index closed slightly lower after relatively stable digestion of the May Federal Open Market Committee (FOMC) meeting.

On the 2nd, the domestic stock market started slightly lower for both KOSPI and KOSDAQ. Various index statuses such as stock prices and exchange rates are displayed on the electronic board in the dealing room at the Hana Bank headquarters in Euljiro, Seoul. Photo by Heo Younghan younghan@

On that day, the KOSPI index closed at 2,683.65, down 1.45 points (0.17%) from the previous trading day. The index started at 2,679.04, down 13.02 points (0.48%). Foreigners and individuals were net buyers of 2.7 billion KRW and 138.8 billion KRW, respectively. Institutions sold alone, offloading 141.8 billion KRW.

Among the top market capitalization stocks, NAVER (2.39%), Samsung SDI (2.19%), Kia (1.36%), Samsung Electronics (0.65%), and LG Chem (0.62%) rose. Conversely, KB Financial Group (-4.37%), Samsung Life Insurance (-3.09%), Hana Financial Group (-2.90%), Samsung C&T (-2.66%), and Shinhan Financial Group (-1.82%) declined.

By sector, textiles and apparel (2.50%), paper and wood (1.25%), food and beverages (0.95%), and electric and gas utilities (0.46%) rose. On the other hand, insurance (-2.91%), finance (-2.06%), and distribution (-1.51%) sectors fell.

Lee Jaewon, a researcher at Shinhan Investment Corp., said, "The KOSPI lacked clear buying momentum. It showed mixed trends influenced by the U.S. stock market decline during the previous day’s holiday. Growth stocks such as internet, gaming, and biotech rebounded amid easing concerns over interest rate hikes. The defense sector, which had seen sell-offs due to Hanwha Aerospace’s earnings falling short of expectations, rebounded. There was no clear capital inflow, as the market awaited major events such as big tech earnings including Apple and value-up seminars."

The KOSDAQ index recorded 867.48, down 1.45 points (0.17%) from the previous session. The index opened at 865.78, down 3.15 points (0.36%). Foreigners and institutions sold 68.5 billion KRW and 15.5 billion KRW, respectively, while individuals were net buyers of 99 billion KRW.

Among the top market capitalization stocks, Samchundang Pharmaceutical (7.55%), Rino Industrial (4.89%), SM Entertainment (2.90%), and Soulbrain (2.48%) rose. Conversely, Sinsung Delta Tech (-7.66%) and HLB (-4.34%) declined. The researcher said, "The KOSDAQ was flat amid mixed economic indicators. With no clear index direction, the market returned to a theme stock phase focusing on individual issues."

On that day, the won-dollar exchange rate in the Seoul foreign exchange market closed at 1,375.9 won, down 6.1 won from the previous trading day.