[Edaily Reporter Kim Hyung-il ] The KOSPI is holding steady around the 6,700 level despite the U.S. Federal Reserve’s (Fed) interest rate hike. Although U.S. stock markets fell overnight amid concerns over the rate hike and the possibility of further monetary tightening, semiconductor stocks are holding up well, limiting the decline in the domestic stock market. The KOSDAQ is showing relatively stronger performance than the KOSPI, rising around the 820 level.

According to MP Doctor on the 17th, as of 9:21 a.m., the KOSPI is at 6,731.47, up 13.50 points (0.2%) from the previous trading day. The index opened at 6,779.02, up 0.91%, but has since pared its gains in early trading. The KOSDAQ is trading at 821.33, up 5.35 points (0.66%) from the previous trading day. After opening 0.51% higher at 820.16, it has slightly expanded its gains.

By market capitalization on the KOSPI, mid-cap stocks rose 0.52%, outpacing the gains of large-cap stocks (0.24%) and small-cap stocks (0.21%). By sector, insurance posted the largest gain on the KOSPI, rising 1.71%. Transportation & Warehousing and Machinery & Equipment also rose 1.49% and 1.24%, respectively. In contrast, real estate, entertainment & culture, and telecommunications sectors were down.

Among the top market-cap stocks, SamsungElectronics(005930)rose 0.2% to 254,000 won. SK hynix(000660)fell 0.68% to 1,747,000 won. SKSQUARE(402340)rose 0.1%, SAMSUNG BIOLOGICS(207940)rose 0.21%, KB Financial Group(105560)rose 1.92%, and SAMSUNG C&T CORPORATION(028260)rose 1.27%. In contrast, SamsungElectroMechanics(009150)and LG Energy Solution(373220)fell 1.23% and HyundaiMotor(005380)fell 0.69%, respectively.

In terms of supply and demand, foreign selling stood out. As of 9:22 a.m., foreign investors had net sold 388.8 billion won on the KOSPI. Retail investors net bought 279.5 billion won, while institutional investors net sold 25.9 billion won. On the KOSDAQ, retail investors net bought 40.4 billion won, foreign investors net sold 46.5 billion won, and institutional investors net bought 8.0 billion won.

On the KOSDAQ, while blue-chip stocks Alteogen Inc.(196170)remained flat, ECOPRO CO., LTD(086520)rose 0.24%, JUSUNG ENGINEERING Co.,Ltd.(036930)rose 0.74%, and LEENO Industrial Inc(058470)rose 0.76%. ECOPRO BM CO., LTD.(247540)fell 0.77%, Rainbow Robotics(277810)fell 0.35%, WONIK IPS Co.,Ltd.(240810)fell 1.68%, EO Technics Co., Ltd.(039030)fell 1.60%, SIMMTECH Co., Ltd.(222800)fell 0.38%, and ROBOTIS(108490)fell 0.81%.

By sector on the KOSDAQ, metals showed strength, rising 1.38%, while transportation equipment and parts, and pharmaceuticals also rose 1.19% and 1.12%, respectively. In contrast, publishing and media reproduction, entertainment and culture, transportation and warehousing, and construction sectors showed weakness.

This is interpreted as the domestic stock market trading sideways following the weakness in the New York stock market overnight after the benchmark interest rate hike. The Federal Reserve raised its benchmark interest rate by 0.25 percentage points, from the previous range of 3.50–3.75% to 3.75–4.00%. The dot plot indicated the possibility of one additional rate hike this year. As Federal Reserve Chairman Kevin Warsh expressed caution regarding inflation, concerns about prolonged high interest rates also grew.

However, U.S. semiconductor stocks remained relatively resilient. The Philadelphia Semiconductor Index rose 0.63%, while Intel gained 4.03%, AMD rose 1.65%, and NVIDIA climbed 0.82%. News of discussions between Intel and SK hynix regarding cooperation on local memory production in the U.S. is also influencing investor sentiment in the domestic electrical and electronics sector.

Kang Jin-hyuk, an analyst at Shinhan Investment Securities, noted, “Despite ongoing macroeconomic uncertainties, Sam Altman’s announcement this week of a major product launch served as a positive catalyst,” adding, “News of discussions between SK Hynix and Intel regarding cooperation on memory production in the U.S. also boosted investor sentiment in the electronics sector.” Regarding the domestic stock market, he assessed, “The KOSPI confirmed support at the lower end of its uptrend and settled in the 6,700-point range, while the KOSDAQ rose, led by small- and medium-sized parts and components and TAIHAN Fiberoptics Co.,LTD.”