"Interest Rate Hikes Are Not Even a Problem"... KOSPI Composite Index Settles Above 6,800 on Foreign and Institutional Buying [fn Morning Market]

[Financial News] The KOSPI Composite Index settled above the 6,800 level despite the Federal Reserve System (Fed)'s recent interest rate hike.
According to the Korea Exchange (KRX), as of 10:20 a.m. on the 18th, the KOSPI Composite Index was trading at 6,847.83, up 132.42 points, or 1.97%, from the previous session. It opened at 6,885.70, up 170.29 points, or 2.54%, from the prior session's close.
Institutional and foreign investors were net buyers of 378.6 billion won and 188.6 billion won, respectively, in the main bourse. It was the first time in eight trading sessions since the 8th that foreign investors had shown net buying. Other corporations, whose activity was centered on share buybacks, were also net buyers of 416.4 billion won. Retail investors were net sellers of 970.5 billion won.
Among the top market-cap stocks, AI-related large caps—including Samsung Electronics, up 2.18%; SK hynix, up 4.27%; SK Square, up 3.08%; and Samsung Electro-Mechanics, up 4.66%—were leading the index higher. Hyundai Motor, up 0.96%; Hanwha Aerospace, up 0.18%; and Samsung Life Insurance, up 0.18%, were also gaining. Meanwhile, LG Energy Solution, down 0.55%; Samsung Biologics, down 0.36%; and KB Financial Group, down 2.18%, were declining.
Most sectors advanced, with electrical and electronics, construction, manufacturing, and medical and precision instruments posting the largest gains at 3.07%, 2.51%, 2.44%, and 0.95%, respectively. Insurance, retail, and food and beverages and tobacco were weaker, falling 0.85%, 0.60%, and 0.50%, respectively.
Although the Fed signaled an additional interest rate hike later this year, the market impact appeared limited. The New York stock market also rose across the board overnight. The S&P 500 and Nasdaq ended the 17th session, local time, up 1.14% and 1.69%, respectively, while the Dow Jones Industrial Average gained 0.62%.
Han Ji-young, a researcher at KIWOOM Securities, explained, "The market currently appears to be gradually adapting to the high-interest-rate environment. A notable feature is that stock markets held up even as the yield on 10-year U.S. Treasury notes fluctuated around the 5% level. This is because earnings and valuation appeal are outweighing interest rates."
At the same time, KOSDAQ was trading at 828.26, up 6.08 points, or 0.74%, from the previous session. It opened at 832.72, up 10.54 points, or 1.28%, from the previous session.
On KOSDAQ, foreign and institutional investors were buying shares worth 33.8 billion won and 10.3 billion won, respectively. Retail investors were selling shares worth 42.0 billion won.

[email protected] Lim Sang-hyuk Reporter