KOSPI Rebounds on U.S. Rate Cut, Surpasses 3,430 Mark

The KOSPI rebounded in just one day following the U.S. interest rate cut.

Yonhap News Agency

As of 9:41 a.m. on September 18, the KOSPI stood at 3,430.03, up 16.63 points (0.49%) from the previous trading day.

On September 17 (local time), the Dow Jones Industrial Average closed at 46,018.32, up 260.42 points (0.57%) from the previous session. The S&P 500 ended down 6.41 points (0.1%) at 6,600.35, while the Nasdaq closed at 22,261.326, down 72.633 points (0.33%).

At the regular meeting of the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve, the benchmark interest rate was cut by 25 basis points (1bp=0.01 percentage points). This is the first rate cut in nine months since December last year. The New York stock market showed mixed results as Jerome Powell, Chair of the Federal Reserve, maintained an uncertain stance. In contrast, the Korean market saw bargain hunting after a drop of more than 1% the previous day.

By investor type, foreign investors and institutions net sold 120.1 billion won and 54.5 billion won, respectively. In contrast, individual investors net purchased 142.2 billion won.

By sector, electrical and electronics rose by 1.75%, while machinery and equipment, and entertainment and culture also saw slight gains. In contrast, metals, electricity and gas, construction, and insurance are each down by more than 1%.

Among large-cap stocks, Samsung Electronics was trading at 79,200 won, up 1,000 won (1.26%) from the previous session. SK Hynix also rose by 3.60%. In contrast, Hanwha Aerospace, KB Financial Group, and Shinhan Financial Group are each down by more than 1%.

The KOSDAQ stood at 850.87, up 5.34 points (0.63%) from the previous trading day.

By investor type, foreign investors and institutions net purchased 25.1 billion won and 12.5 billion won, respectively. In contrast, individual investors net sold 29.8 billion won.

By sector, machinery and equipment rose by 2.10%, with construction, distribution, and chemicals also rising. In contrast, metals, textiles and apparel, and paper and wood are showing slight declines.

Among large-cap stocks, Alteogen was trading at 478,000 won, up 5,000 won (1.06%) from the previous session. Rainbow Robotics is up 2.63%, and both LIG ChemBio and HLB are up by more than 1%. In contrast, Peptron and Kolon TissueGene have each fallen by more than 1%.