KOSPI Holds Up Despite U.S. Rate Hike... Foreign Investors Sell for Seventh Straight Trading Day [fn Morning Market Update]

[Financial News] The Federal Reserve System (Fed) raised its policy rate, but the KOSPI Composite Index continued to rise. However, foreign investors have been selling Korean stocks for the seventh consecutive trading day, limiting the size of the gains. According to the Korea Exchange (KRX), as of 10:30 a.m. on the 17th, the KOSPI Composite Index was up 0.67% from the previous trading day at 6,763.12. The index opened at 6,779.02, up 0.91% from the previous session, and climbed as high as 6,795.53 in early trading before giving up some of its gains.
Retail investors bought 209.7 billion won worth of shares, while foreign investors and institutions sold 573.6 billion won and 58.1 billion won worth, respectively.
Performance varied sharply by stock. Among the largest companies by market capitalization, Samsung Electronics rose 0.20%, while SK hynix fell 0.63%, leaving even the two leading semiconductor stocks moving in opposite directions. Bank stocks, meanwhile, rallied across the board on expectations that higher interest rates would improve net interest margins (NIMs), with KB Financial Group up 1.87%, Shinhan Financial Group up 0.98%, and Hana Financial Group up 1.98%.
By contrast, Samsung Electro-Mechanics (-1.16%), LG Energy Solution (-1.23%), and Hyundai Motor (-0.41%) remained in negative territory.
The KOSDAQ (Korea Securities Dealers Automated Quotations) also moved higher. At the same time, it stood at 821.25, up 0.63% from the previous trading day. After opening at 820.16, up 0.51%, the index climbed as high as 823.58 during the session before paring some of its gains.
In KOSDAQ trading flows, retail investors and institutions bought 35.8 billion won and 4.4 billion won worth of shares, respectively, while foreign investors sold 41.5 billion won worth. Alteogen (0.39%), EcoPro (0.36%), Jusung Engineering (1.24%), LEENO Industrial (1.06%), and HLB (1.25%) advanced, while ECOPRO BM (-0.38%), WONIK IPS (-1.17%), and EO Technics (-0.85%) weakened.
Han Ji-young, a researcher at KIWOOM Securities, said, "Although short-term yields, including the two-year yield, rose after the September FOMC meeting, it is worth considering that the increase in long-term yields, including the 10-year yield, was limited. This shows that concerns about Fed tightening and inflation had already been priced into long-term yields."

[email protected] Han Young-jun Reporter