The KOSPI, which started lower due to indications of a slowdown in interest rate cuts in the United States, is fluctuating around the 2440 level during the trading session.
According to the Korea Exchange, as of 11:25 a.m. on the 19th, the KOSPI index was down 40.05 points (1.61%) from the previous trading day, standing at 2444.38. The index started at 2426.55, down 57.88 points (2.33%) from the previous close, and fell to 2423.59 during the trading session.
The U.S. Federal Reserve (Fed) has decided to lower the benchmark interest rate, but the 'dot plot' containing future interest rate projections from Fed officials has turned into a negative factor, suggesting that the rate cut next year will be limited to 50 basis points. The long-term neutral rate has been raised from 2.875% to 3%.
The delayed outlook for U.S. interest rate cuts has further intensified the strength of the dollar, creating downward pressure on the domestic stock market. As of 11:25 a.m. on the day, the exchange rate for the won against the U.S. dollar was 1459 won. During the trading session, it broke above 1450 won for the first time in over 15 years since March 2009.
Currently, foreign investors are net selling more than 350 billion won, exacerbating the decline in the index. Foreigners had net purchased 267.6 billion won the previous day but turned to 'sell' just one day later. Domestic institutions are also net selling 222 billion won. Individuals are net buying over 530 billion won.
By individual stocks, Samsung Electronics and SK Hynix, the top two companies by market capitalization in the KOSDAQ market, are both down more than 2% and 3%, respectively. The announcement of dismal market forecasts from Micron Technology, a U.S. semiconductor corporation, due to weak semiconductor demand has been a negative factor.
In addition, the top 10 stocks by market capitalization, including LG Energy Solution, Samsung Biologics, Hyundai Motors, Celltrion, and Kia, are all experiencing declines. Meanwhile, the strong dollar is boosting investment sentiment in the shipbuilding sector, resulting in gains for HD Hyundai Heavy Industries and HD Hyundai Mipo.
At the same time, the KOSDAQ index decreased by 14.02 points (2.01%), standing at 683.55. The index began at 682.53, down 15.04 points (2.16%), dipping below the 680 mark. Foreign and institutional investors are leading the decline in the index, net selling 86.9 billion won and 59.1 billion won, respectively.
In the KOSDAQ market as well, most of the stocks in the top market capitalization are declining. In particular, concerns over sustained high-interest rates are affecting the leading bio stocks such as Alteogen, HLB, and LigaChem Bio, which are all seeing declines. Stock prices for Ecopro and Ecopro BM are also on a downturn.