Powell's Hawkish Signal Turns Stock Market Green... KOSPI Falls Below 2400

Won-Dollar Opens Up 2.9 Won at 1408.0 Won

On the 15th, the KOSPI started lower and extended its losses, breaking below the 2400 level. Foreign investors initially showed a 'buying' trend at the opening but soon turned to 'selling.' It appears that investor sentiment weakened following remarks by Federal Reserve (Fed) Chair Jerome Powell on the previous day (local time), stating that there is no need to rush rate cuts. The won-dollar exchange rate also opened higher.

At 9:33 a.m., the KOSPI was trading at 2399.00, down 0.82% (19.86 points) from the previous day. The index opened at 2413.05, down 0.24% (5.81 points) from the previous close.

Foreign investors were buyers immediately after the market opened but are currently net sellers of 65.7 billion KRW, while institutions have switched from buying to net selling of 800 million KRW. Individual investors alone are net buyers of 71.2 billion KRW. In the futures market, foreign investors are solely selling 139.2 billion KRW, while individuals and institutions are buying 50.6 billion KRW and 95.8 billion KRW, respectively.

Among the top 10 stocks by market capitalization, LG Energy Solution is sharply down 6.87% to 393,000 KRW compared to the previous day. This is interpreted as a reaction to reports on the previous day (local time) that the incoming administration team of President-elect Donald Trump plans to abolish the tax credit of up to $7,500 per electric vehicle purchase, dampening investor sentiment. Other stocks such as Kia (-1.41%) and Samsung Biologics (-0.31%) are also declining.

On the other hand, Samsung Electronics is trading up 2.20% at 51,000 KRW. SK Hynix is up 1.68%, NAVER 0.74%, and Celltrion 0.54%.

At 9:37 a.m., the KOSDAQ index was at 673.59, down 1.17% (7.97 points) from the previous day. The index opened at 675.64, down 0.87% (5.92 points) from the previous close. Individual investors are net sellers of 53.3 billion KRW, pulling the index down, while foreign investors and institutions are net buyers of 38.7 billion KRW and 16.3 billion KRW, respectively.

Among the top 10 stocks by market capitalization, the battery sector is showing signs of weakness. Ecopro BM is down 7.11%, Ecopro -5.98%, Enchem -3.38%, and Alteogen -0.57%. HPSP is notably up 5.51%, and Samchundang Pharmaceutical is up 3.87%.

Meanwhile, the exchange rate opened at 1408.0 KRW, up 2.9 KRW from the previous trading day's closing price, reflecting offshore rates. Compared to the closing price at 2 a.m. (1402.5 KRW), it rose 5.5 KRW.