On the eve of the New Year, the Korean stock market opened strongly, with KOSPI rising above 4146 points. Samsung Electronics and SK Hynix led the gains.

Source: BlockMedia Original Title: [Market Opening] KOSPI Starts the New Year Above 4146…Samsung Electronics and SK Hynix ‘Strong’ Original Link: 29 South Korea stock exchange opens higher. According to Korea Exchange data, as of 9:23 a.m. this morning, the KOSPI index rose 50.83 points (1.23%) from the previous trading day, recording 4180.51. The KOSPI increased by 16.80 points (0.41%) from the previous day (4129.68), opening at 4146.48, with the gain further expanding afterward.

On the eve of the last trading day of the year, strong buying by individual investors pushed the index higher. Among them, SK Hynix, which had its warning lifted, rose over 5% in early trading.

In the securities market, individual investors net bought 38.81 billion KRW, while foreign and institutional investors net sold 4.4 billion KRW and 33.32 billion KRW respectively.

Semiconductor and Defense Stocks Strengthen

The industry showed mixed trends. Electrical and electronic sectors rose 2%, manufacturing, metals, and machinery sectors increased 1%. Conversely, non-metal sectors declined 3%, securities and textiles & apparel sectors fell 1%.

The top 10 market cap stocks showed mixed movements. Hanwha Aerospace (7.47%) surged rapidly. The dual-strong semiconductor stocks SK Hynix (5.34%) and Samsung Electronics (1.79%) also performed strongly. Additionally, Hyundai Heavy Industries (1.76%) and Doosan Energy Solutions (1.63%) rose. Conversely, LG Energy Solution (-0.91%), Samsung Biologics (-0.30%), Hyundai Motor (-0.17%), and KB Financial (-0.88%) declined.

Global Financial Market Outlook

This week, global financial markets are expected to be thinly traded due to year-end holidays and New Year breaks in major countries. South Korea and Japan stock markets will be open for only 3 trading days this week, and the US for only 4 days.

Market focus is on the release of the December Federal Open Market Committee (FOMC) minutes on the 31st (U.S. local time). Despite the December FOMC announcing a 25 basis point cut in the benchmark interest rate, the U.S. 10-year Treasury yield remains at 4.10%-4.19%, showing no clear downward trend.

The decoupling between the benchmark rate and market rates is interpreted as influenced by concerns over inflation re-expanding, uncertainty over the next Fed chair, and increasing internal disagreements within the Fed. In fact, the number of dissenting votes in the December FOMC rate decision increased to 3, up from 2 previously.

Therefore, the market is expected to scrutinize the FOMC minutes to assess the internal divisions within the Fed and make slight adjustments to early-year market rate expectations.

A securities research analyst stated that, during this process, AI-related stocks still controversial for high valuations and biotech stocks sensitive to rate changes will be noteworthy events when the FOMC minutes are released.

Another analyst pointed out that the domestic stock market will be influenced by U.S. AI stock movements, December FOMC minutes, USD/KRW exchange rate changes, year-end dividend ex-dates, Korea’s December export indicators, and SK Hynix investment warnings being lifted, with a potential attempt to reach 4200 points. This week, KOSPI is expected to fluctuate between 4050 and 4220 points.

KOSDAQ Also Rises to 923 Points

Meanwhile, the KOSDAQ index rose 4.19 points (0.46%) from the previous trading day, closing at 923.86. It opened at 923.22, up 3.55 points (0.38%) from the previous day, and maintained an upward trend.

In the KOSDAQ market, only individual investors net bought 15.16 billion KRW. Conversely, foreign and institutional investors net sold 2.97 billion KRW and 9.55 billion KRW respectively.

By industry, medical precision equipment, metals, and financial stocks rose 1%. Communication and IT services sectors underperformed.

Most of the top market cap stocks on KOSDAQ rose. Altogen (2.28%), EcoPro (2.47%), Rainbow Robotics (0.63%), Kolon TissueGene (2.80%), HLB (2.50%), Peptron (7.19%), and Samchundang Pharm (2.04%) increased.

Conversely, ABL Bio (-2.11%) and Rigakemme Bio (-2.22%) declined.

Exchange Rate Trends

In Seoul’s foreign exchange market, the USD/KRW exchange rate fell 0.3 KRW from the previous trading day’s close (1440.3 KRW), opening at 1440.0 KRW.