Closing Slightly Firm Around Early 2700 Level
The KOSPI index fluctuated throughout the session and closed slightly higher in the early 2700 range. It is observed that there is significant caution ahead of the U.S. Federal Open Market Committee (FOMC) meeting scheduled for the 12th (local time).
On the 11th, the KOSPI index closed at 2705.32, up 0.15% from the previous session. The index started the day rising to 2716.72, then sharply dropped and hovered around the mid-2710s. Individual investors bought stocks worth 344.6 billion KRW, while foreigners (224.3 billion KRW) and institutions (118.4 billion KRW) both showed net selling.
Large-cap stocks showed mixed movements. SK Hynix (2.16%), LG Energy Solution (0.99%), Hyundai Motor (1.31%), Samsung Biologics (0.54%), Kia (0.49%), Celltrion (1.64%), and POSCO Holdings (0.80%) closed higher. On the other hand, Samsung Electronics (-0.66%) and Samsung Electronics Preferred (-1.76%) declined.
Among large caps, domestic chemical stocks showed notable strength. Lotte Chemical (8.61%), Daehan Petrochemical (8.44%), Aekyung Chemical (6.44%), and Kumho Petrochemical (5.89%) all closed with significant gains. This is believed to be influenced by an improvement in chemical spreads.
Hyundai Motor showed an upward trend amid expectations for record-breaking exports in the second quarter and increased shareholder returns. Hyundai Motor also posted better-than-expected results in the first quarter. Its first-quarter sales rose 7.6% year-on-year to 40.7 trillion KRW, and operating profit increased 2.3% to 3.6 trillion KRW. It is expected that strong performance will continue in the second quarter, supported by overseas demand.
The KOSDAQ index closed at 868.36, up 0.42% from the previous session. The index started slightly higher and rose during the session, supported by buying from foreigners and institutions, but gave up some gains in the afternoon. Foreigners bought stocks worth 15.1 billion KRW, institutions 28.8 billion KRW, while individuals sold 33.4 billion KRW net.
Jo Jun-gi, a researcher at SK Securities, explained, "It is estimated that caution ahead of the U.S. Consumer Price Index (CPI) and the FOMC meeting early on the 13th will have a considerable impact. However, it was confirmed that the atmosphere is far from a sell-first-and-run scenario."
He added, "We should weigh the possibility that limited volatility will continue until tomorrow ahead of this major event. While Powell is likely to try to distance himself from recent rate cuts by the Eurozone and the Bank of Canada, considering the market’s strong absorption capacity and the retreat of already reflected expectations, the environment is not necessarily unfavorable for long investors."
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