[Edaily Reporter Shin Ha-yeon ] The KOSPI closed at the 6,700 level on the 16th, up by more than 1%, driven by institutional buying. Although concerns persisted over rising international oil prices and U.S. long-term interest rates ahead of the U.S. Federal Open Market Committee (FOMC) meeting, institutions drove the index higher with net purchases exceeding 1 trillion won.

According to MP Doctor on the 16th, the KOSPI closed at 6,717.97, up 90.71 points (1.37%) from the previous trading day. The index opened at 6,611.24, down 0.24% from the previous close, and fluctuated within a narrow range. Although it dipped as low as 6,598.87 during the session, it subsequently managed to rebound. This marks the first positive close in five trading days since the 9th.

In terms of supply and demand, institutional investors were net buyers of 1.2118 trillion won on the stock market. In contrast, foreign investors and retail investors were net sellers of 1.6811 trillion won and 1.1862 trillion won, respectively. Program trading, combining arbitrage and non-arbitrage transactions, recorded a net sell position of 920 billion won.

By sector, the electrical and electronics sector closed up by around 2%. This was followed by gains in manufacturing, medical and precision equipment, and retail. Conversely, construction, IT services, entertainment and culture, transportation equipment and parts, electricity and gas, machinery and equipment, securities, transportation and warehousing, chemicals, metals, food, beverages, and tobacco, real estate, non-metals, and insurance all ended the day in negative territory.

Among the top market-cap stocks, SamsungElectronics(005930)closed at 253,500 won, up 5,000 won (2.01%) from the previous trading day. SK hynix(000660)closed at 1,759,000 won, up 69,000 won (4.08%). In addition, SKSQUARE(402340)(2.0%), SamsungElectroMechanics(009150)(4.86%), and LG Energy Solution(373220)(0.41%) all rose. On the other hand, HyundaiMotor(005380)(-1.36%) and SAMSUNG BIOLOGICS(207940)(-0.21%) closed lower.

Recently, volatility in domestic semiconductor stocks has increased as concerns about a slowdown in artificial intelligence (AI) development have coincided with rising long-term U.S. interest rates. Noh Dong-gil, an analyst at Shinhan Investment Securities, stated, “It is not yet time to lower semiconductor profit forecasts based solely on discussions about a slowdown in AI development,” but added, “Nor is it the right time to rush into chase buying simply because demand is strong.” He further noted, “Whether the U.S. 10-year Treasury yield stabilizes following this FOMC meeting is the first condition to consider before increasing exposure.”

Regarding the recent correction in the semiconductor sector, Analyst Noh analyzed that it is largely a revaluation rather than a reflection of corporate earnings themselves. He explained, “Korean semiconductors are a prime example of AI-sensitive assets for global investors,” adding, “If U.S. long-term interest rates rise and caution regarding AI increases, foreign investors may reduce their risk exposure first without waiting for earnings downgrades.” Conversely, he noted, “If long-term interest rates stabilize without significant erosion of actual earnings estimates, a rebound could materialize first through the restoration of the price-to-earnings ratio (P/E ratio), rather than waiting for an upward revision to EPS.”

On the KOSPI, 268 stocks rose and 597 fell. Fifty-two stocks closed unchanged, and one hit the daily price limit down. Trading volume totaled 197,715,000 shares.

On the same day, the KOSDAQ Index closed at 815.98, up 3.57 points (0.44%) from the previous trading day. The index opened at 808.37, dipped to 801.12 during the session, but subsequently rebounded to reach a high of 815.98.

In the KOSDAQ market, retail investors and institutional investors were net buyers of 13 billion won and 17 billion won, respectively, while foreign investors were net sellers of 28.5 billion won. On the KOSDAQ, 713 stocks rose—including 7 that hit their daily upper limit—while 928 stocks fell. Ninety stocks closed unchanged.

Top-market-cap stocks showed mixed performance. Alteogen Inc.(196170)(-1.73%), ECOPRO CO., LTD(086520)(-2.61%), ECOPRO BM CO., LTD.(247540)(-2.71%), and Rainbow Robotics(277810)(-2.31%) posted losses, while JUSUNG ENGINEERING Co.,Ltd.(036930)(4.77%), WONIK IPS Co.,Ltd.(240810)(10.15%), and EO Technics Co., Ltd.(039030)(4.82%) closed higher.

Meanwhile, market attention is focused on the September FOMC results, to be announced in the early hours of the 17th (KST), and the subsequent trend in U.S. long-term interest rates. The market views the path of future rate hikes—rather than the rate hike itself—and the resulting movements in the U.S. 10-year Treasury yield as key variables that will determine the direction of the domestic stock market.

Kim Min-kyu, an analyst at KB Securities, stated, “Even if a rate hike is implemented, we expect the short-term impact to be minimal,” adding, “In fact, if the rate hike temporarily stabilizes long-term interest rates, it may not be bad for the stock market.”

He continued, “While we believe the bottom is supported for Korean stocks due to declining valuations and the fact that interest rate concerns are already priced in, the current environment of light trading volume and a slowdown in earnings per share (EPS) growth suggests that resistance from selling pressure could also cap the short-term upside.”

Meanwhile, New York stock markets fell across the board overnight amid caution over the September FOMC meeting and pressure from rising international oil prices and U.S. Treasury yields. The Dow Jones Industrial Average fell 0.63%, the S&P 500 index fell 0.45%, and the Nasdaq Composite Index fell 0.78%. In contrast, the Philadelphia Semiconductor Index rose 0.4%. The yield on the 10-year U.S. Treasury note once again surpassed 5%, and WTI crude oil reached the $105 per barrel range.