The Korea Composite Stock Price Index (KOSPI) rebounded in a day to set another all-time high. Overnight, the U.S. Federal Reserve (Fed) cut the benchmark interest rate by 0.25 percentage point (p) as expected, restarting the rally. On the 18th, both the KOSPI and the Korea Securities Dealers Automated Quotations (KOSDAQ) rose more than 1%.
President Lee Jae-myung reaffirmed his commitment to boosting the stock market that day. Over lunch with brokerage research heads, Lee said he would make it so that the saying "Korean stock market return is by intelligence order" could take hold, and promised to continue pushing stock market revitalization policies such as the "KOSPI 5000" pledge.
That day, the KOSPI closed at 3,461.30, up 47.90 points (1.40%) from the previous trading day. It once again broke the all-time high set two days earlier. The KOSPI had risen for 11 consecutive trading days this month, then closed lower on the 17th ahead of the Federal Open Market Committee (FOMC).
However, overnight the Fed cut the benchmark rate from 4.25–4.50% to 4.00–4.25% by 0.25 percentage point, and it rebounded in a day. The KOSPI opened at 3,432.77 and widened gains in the afternoon.
Lee Jae-won, a researcher at Shinhan Investment & Securities, said, "The KOSPI rose for 11 consecutive trading days and fell for one day, and after confirming the FOMC rate cut and the dot plot, the uptrend resumed."
Foreigners and institutions, who had taken profits early in the session, turned to net buying in the afternoon and led the Korea Exchange main board. Foreigners and institutions posted net purchases of 283.8 billion won and 428.9 billion won, respectively, while individuals alone sold 779.8 billion won.
Semiconductor bellwethers on the main board also refreshed their highest levels in a year. Samsung Electronics closed at 80,500 won that day. SK hynix also climbed to as high as 357,000 won intraday, marking an all-time high.
Lee Kyung-min, a researcher at DAISHIN SECURITIES, said, "Buying by foreigners and institutions is concentrating on the electric and electronics and semiconductor sectors, where positive stock trends have continued recently."
The KOSDAQ also closed up more than 1%. The KOSDAQ finished the session at 857.11, up 11.58 points (1.37%) from the previous trading day. Foreigners bought 52.5 billion won and institutions 161.8 billion won, while individuals were net sellers of 205.2 billion won.
Researcher Lee Jae-won explained, "On the KOSDAQ, semiconductor materials, parts, and equipment stocks that saw profit-taking the previous day rose. Also, on expectations of Chinese President Xi Jinping's visit to Korea, China-related names such as entertainment and travel continued to be strong."
In the securities industry, there was an outlook that attention should now turn to tariff negotiations and third-quarter earnings. Researcher Lee Jae-won analyzed that going forward, "Additional drivers will likely come from progress in tariff negotiations, third-quarter corporate earnings, and stocks expected to post strong third-quarter results."