The KOSPI and the KOSDAQ have moved in opposite directions in recent sessions. After the KOSPI topped the 7,000 mark, it quickly gave back its gains under heavy foreign selling, while the KOSDAQ has held relatively firm. The gap between the two markets persisted even as investors digested a hawkish decision from the U.S. Federal Reserve's Federal Open Market Committee.
The KOSPI closed at 6,715.41 on the previous session, down 0.04% from a day earlier, according to the Korea Exchange on the 18th. The index had risen more than 1% during the session but surrendered all of those gains as foreign investors sold heavily. The KOSDAQ, by contrast, ended at 822.18, up 0.76%, for its third consecutive gain. The two markets responded differently to the same hawkish FOMC outcome.
The KOSDAQ's relative strength extends beyond a single session. The KOSPI fell 4.53% through the 17th after crossing the 7,000 line at 7,033.92 on the 10th of this month. Over the same period, the KOSDAQ slipped only 1.76%, from 836.92 to 822.18, outperforming the KOSPI by 2.77 percentage points.
The KOSDAQ's showing stands out even more given the interest rate backdrop. The Fed raised its policy rate to 4.00%, the first increase in three years, and left the door open to further hikes this year through its dot plot. Rising rates typically weigh on the KOSDAQ, which is more heavily weighted toward growth stocks, but the index has instead limited its losses relative to the KOSPI.
On the main board, large-cap chip stocks that had led the index higher paused, while foreign selling added pressure. Samsung Electronics (005930.KS) and SK hynix (000660.KS) were weak on the 17th, while financials and industrials such as shipbuilders and defense contractors advanced, cushioning the index. Financial stocks rose on expectations that they will benefit from higher rates, while defense and shipbuilding names gained on company-specific news and earnings momentum.
On the KOSDAQ, large caps in biotech and secondary batteries were mixed, while some materials, parts and equipment makers supported the index. Alteogen (196170.KQ) and Ligachem Biosciences (141080.KQ) each rose more than 1% on the 17th, and EcoPro BM (247540.KQ) and EcoPro (086520.KQ) were also strong. Rotation into chip materials and equipment suppliers and aerospace names also helped underpin the index.
"As the market digested a hawkish FOMC, chip stocks on the KOSPI took a breather while financials and industrials supported the index," said Kang Jin-hyuk, an analyst at Shinhan Securities. "The KOSDAQ has posted gains for seven straight sessions even in a converging market with no clear direction, and materials, parts and equipment makers are holding up the index."
Sector rotation has also served as a prop for the KOSDAQ. Aerospace-related shares rallied after Elon Musk signaled a possible merger between Tesla and SpaceX and as expectations built for a Starship orbital flight, while Sungho Electronics (043260.KQ) surged on news that a subsidiary had won an order for optical communications equipment.
