Federal Reserve Open Market Committee comments impact...Korean stock market, KOSPI index plummets 2.73%

The Korean stock market declined on March 19 due to uncertainties following the Federal Open Market Committee meeting and the strengthening of the US dollar. Major stocks mainly in the securities sector all fell, negatively impacting the entire market.

The ongoing escalation of the war in Iran and the Federal Reserve’s mention of potential monetary tightening increased market concerns. In particular, comments from Federal Reserve Chair Jerome Powell suggesting possible interest rate hikes triggered a decline in the New York stock market and exerted downward pressure on Asian markets.

Despite the previous day’s gains, the KOSPI, Korea’s main stock index, closed down 2.73% on that day. The KOSDAQ index also fell by 1.79%. Among securities stocks, Korea Financial Holdings and Mirae Asset Securities saw significant declines, likely reflecting a retreat in risk asset appetite.

Additionally, the strengthening dollar caused the won to surge 17.9 won against the dollar, reaching 1,501.0 won. This fueled selling by foreign investors and put overall pressure on the domestic stock market. Meanwhile, international oil prices rose intraday to $111.90 per barrel, adding to concerns.

On the other hand, SK Securities surged 15.96% after announcing a share buyback, standing out in performance. This volatility indicates that financial markets are reacting sensitively to external variables. If uncertainties about the global economy and US monetary policy persist, the Korean stock market is likely to continue being affected.