The KOSPI index fell over 3% ahead of the September Federal Open Market Committee (FOMC) meeting, retreating to the 6,600 level. Following the release of the U.S. Consumer Price Index (CPI) for August, which heightened expectations for a Federal Reserve interest rate hike, foreign and institutional investors led a significant sell-off, driving the index lower. The KOSDAQ also showed a decline of over 1%.
As of 9:14 a.m. on September 14, the KOSPI was trading at 6,710.30, down 199.61 points (2.89%) from the previous trading day. The index opened at 6,692.61, down 217.30 points (3.14%) from the last close.
In the securities market, individual investors were net buyers, purchasing 1.88 trillion won, while foreign and institutional investors sold off 1.24 trillion won and 692.3 billion won, respectively. Individual investors absorbed the large sell-off from foreign and institutional players.
All major stocks by market capitalization were in decline. Samsung Electronics fell 3.08%, SK Hynix dropped 4.80%, SK Square decreased by 6.98%, Samsung Electro-Mechanics was down 4.64%, LG Energy Solution fell 1.39%, Hyundai Motor dropped 3.92%, Samsung Biologics decreased by 1.55%, KB Financial fell 0.51%, Samsung Life Insurance was down 5.53%, and Doosan Enerbility dropped 1.54%.
The KOSDAQ index also showed a decline, down 15.37 points (1.87%) to 805.27. It opened at 806.27, down 14.37 points (1.75%), and continued to widen its losses.
In the KOSDAQ market, individual investors were net buyers, purchasing 94.4 billion won, while foreign and institutional investors sold off 55.9 billion won and 39.9 billion won, respectively.
Among the top market capitalization stocks, Alteogen fell 3.17%, EcoPro dropped 3.20%, EcoPro BM decreased by 3.72%, Rainbow Robotics was down 3.44%, IOTechniques fell 1.68%, and Simtech dropped 2.52%. Conversely, Wonik IPS rose 0.36% and Rino Industrial increased by 0.60%.
Market analysts predict that this week, the domestic stock market will experience volatility influenced by the August CPI results, the potential for a September FOMC interest rate hike, the Bank of Japan's policy meeting, international oil prices, and foreign investor sentiment. Han Ji-young, a researcher at Kiwoom Securities, projected a KOSPI range of 6,600 to 7,200 points for the week.
Han noted that if an interest rate hike occurs at the September FOMC, it will be crucial to determine whether this action is a one-time preemptive measure to curb inflation or the beginning of an additional tightening cycle.
“Last week, the KOSPI recovered above 7,000 points for the first time in 33 trading days due to foreign net buying, but macroeconomic uncertainties led to foreign net selling in the latter part of the week, bringing it back down to the 6,900 range,” Han said. “It is difficult to consider 7,000 points as a support level.”
He added, “The key players determining the market direction will be foreign investors, and whether they resume net buying during the September FOMC event will be essential for stabilizing above 7,000 points. Despite macro uncertainties, it is noteworthy that the KOSPI is showing a pattern of strength in the semiconductor sector, where recent AI demand and memory market outlooks remain intact.”
* This article has been translated by AI.
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