The Korea Composite Stock Price Index (KOSPI) increased by 1.5%, recovering the loss from the previous 20th. This was due to the U.S. Personal Consumption Expenditures (PCE) price index falling below market expectations, easing inflation concerns. Foreign and institutional investors embarked on simultaneous buying, and the stocks of Samsung Electronics and SK Hynix, which hold the top two positions in market capitalization, also rose.
On the 23rd, the KOSPI closed at 2,442.01, up 37.86 points (1.57%) from the previous trading day. The index started off strong at 2,423.36, up 19.21 points (0.8%) compared to the closing price on the previous 20th, and expanded its gains. The KOSPI even rose to 2,446.97 during intraday trading.
Both institutions and foreign investors contributed to the rise in the index by actively buying. They net purchased 435.1 billion won and 145.2 billion won, respectively. Notably, foreign investors had net sold 821.2 billion won on the previous 20th, which had pushed the KOSPI down by 1.3%, but they reversed to buying on this day. Individual investors net sold 675.6 billion won.
It is analyzed that the easing of the U.S. December hawkish interest rate cut shock that had shaken the domestic stock market led to an improvement in investor sentiment. This follows the U.S. Department of Commerce's announcement on the 20th that the November Personal Consumption Expenditures (PCE) price index rose by 2.4%, falling short of market expectations.
The PCE price index is considered a preferred price indicator by the Federal Reserve. Prior to this, the Federal Reserve had reduced the number of anticipated interest rate cuts from four to two during the December Federal Open Market Committee (FOMC) meeting, drawing market attention to the PCE price index.
The influx of bargain hunting was also cited as a reason for the KOSPI's rebound on this day. Following a 1.95% decline on the 19th and another 1.3% drop on the 20th, the KOSPI's price-to-book ratio (PBR) had remained at 0.8 times, while Japan was recorded at 1.37 times and China exceeded 1 time.
Lee Kyung-min, a researcher at Daishin Securities, noted that “concerns over delays or halts in interest rate cuts due to inflation uncertainty spread in the market after the FOMC meeting in the U.S., but as PCE prices stabilized, the market was relieved.” He added that “the KOSPI's valuation attractiveness became prominent, leading to an influx of bargain hunting.”
By stock, both Samsung Electronics and SK Hynix saw their prices rise. With the U.S. confirming the scale of subsidies for Samsung Electronics and SK Hynix, it became good news that both companies are in discussions for high-bandwidth memory (HBM) supply to Broadcom.
The shipbuilding sector, which had attracted attention as a beneficiary of the strong dollar, continued to rise on this day as well. This was due to U.S. Senators and Representatives proposing the U.S. Ships Act, increasing expectations for growth in shipbuilding and maintenance workloads. Hanwha Ocean's stock price rose by more than 7% on this day.
Additionally, stock prices of LG Energy Solution, Samsung Biologics, Hyundai Motor, Celltrion, and KB Financial also rose across the board. Among the top 20 stocks by market capitalization in the KOSPI, only three stocks, including Kia, Naver, and LG Chem, saw declines.
The KOSDAQ index also closed higher, finishing at 679.24, up 10.93 points (1.64%) from the previous day. Foreign and institutional investors, similar to the KOSPI, initiated simultaneous buying, contributing to the rise in the index. They net purchased 130.6 billion won and 101.9 billion won, respectively, while individual investors net sold 233 billion won.
By stock, bio stocks showed strength. In particular, Systech Pharmaceutical recorded the upper limit and secured fifth place in market capitalization in the KOSDAQ market, bolstered by news of an exclusive supply contract for the 'Ailea' biosimilar to the U.S. and Latin America. Rigacam Bio's stock also rose by more than 4%.
Additionally, stock prices of Ecopro BM, Klassys, RINO Industry, Enchem, PharmaRacer, and Rainbow Robotics also rose. In contrast, stocks of HLB, Ecopro, Hugel, and Shinsung Delta Tech fell.
Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate is rising again. As of 3:56 p.m., it recorded 1,452.40 won, up 3.9 won (0.27%) from the previous trading day. The dollar index stabilized in the 107 range, and despite the foreign investor buying spree, it is interpreted that the weakness of the Chinese yuan influenced the situation.