Seoul Shares Reach New Record High After Fed Interest Rate Cut

Strategic Insights -

The Korean stock market set a new record high on Thursday, with the KOSPI index gaining 1.40 percent to close at 3,461.30. The Federal Reserve's decision to lower interest rates by a quarter percentage point to a range of 4.00-4.25 percent was seen as a positive signal for the market, with technology and auto stocks leading the gains. Institutions and foreigners were major buyers of shares, while individuals were net sellers. Market bellwether Samsung Electronics topped the 80,000-won threshold for the first time in 13 months, and its chipmaking rival SK hynix jumped 5.85 percent.

Key Takeaways:

  • The KOSPI index rose 47.90 points, or 1.40 percent, to a fresh all-time high of 3,461.30.
  • Trade volume was moderate at 386.81 million shares worth 12.09 trillion won (US$8.7 billion).
  • Institutions and foreigners bought a net 428.9 billion won and 283.7 billion won worth of shares, respectively, while individuals sold a net 779.7 billion won.
  • Market bellwether Samsung Electronics topped the 80,000-won threshold for the first time in 13 months.
  • Samsung Electronics added 2.94 percent to 80,500 won, and its chipmaking rival SK hynix jumped 5.85 percent to 353,000 won.
  • Top automaker Hyundai Motor gained 1.16 percent to 218,500 won, and leading steelmaker POSCO Holdings advanced 0.35 percent to 284,500 won.

Statistics:

  • The KOSPI index gained 47.90 points, or 1.40 percent, to close at 3,461.30.
  • Turnover was 386.81 million shares worth 12.09 trillion won (US$8.7 billion).
  • The Korean won fell against the U.S. dollar, trading at 1,387.80 won against the greenback at 3:30 p.m., down 7.7 won from the previous session.
  • Institutions bought a net 428.9 billion won worth of shares.
  • Foreigners bought a net 283.7 billion won worth of shares.

Sources:

  • Yonhap News Agency
  • Korean News Agency
  • Shinhan Securities Co.
  • Bloomberg
  • Reuters