The KOSPI index rebounded from early losses to recover above the 6900 mark, buoyed by strong performances from semiconductor stocks like Samsung Electronics and SK Hynix. Despite profit-taking following a sharp rise the previous day, these stocks, along with financial shares, helped lift the index. In contrast, the KOSDAQ fell over 4%, dragged down by selling from foreign and institutional investors.
On August 21, the Korea Exchange reported that the KOSPI closed at 6912.95, up 60.37 points (0.88%) from the previous trading day.
The index opened at 6759.95, down 92.63 points (1.35%), but gradually reduced its losses. The KOSPI turned positive during the session, regaining the 6900 level and maintaining its upward momentum.
In the securities market, institutions were net buyers, purchasing 328.3 billion won. Meanwhile, individuals and foreigners were net sellers, offloading 977.7 billion won and 425.9 billion won, respectively.
Initially, the market showed weakness due to profit-taking after a more than 5% surge the previous day and concerns over rising U.S. long-term interest rates. However, buying interest in major semiconductor stocks like Samsung Electronics and SK Hynix reversed the trend.
Notably, expectations for increased shareholder returns from Samsung Electronics improved investor sentiment toward large-cap stocks. Bloomberg reported that Samsung is expected to announce a new shareholder return package worth between 90 trillion and 110 trillion won, which has created positive momentum across the semiconductor sector.
SK Hynix also continued its strong performance following its announcement of a 40 trillion won share buyback and cancellation plan. The company plans to buy back 40 trillion won worth of its shares over the next three months and cancel all of them. It also increased its shareholder return target to over 50% of its free cash flow for 2025-2027, up from the previous 50% cap.
Among the top market cap stocks, Samsung Electronics (3.87%), SK Hynix (2.31%), Samsung Life (10.61%), Samsung C&T (5.75%), and KB Financial (2.69%) closed higher, while Samsung Electro-Mechanics (-5.73%), Hyundai Motor (-0.60%), LG Energy Solution (-4.05%), and Samsung Biologics (-1.46%) ended lower.
The KOSDAQ index closed at 801.94, down 38.95 points (4.63%) from the previous trading day.
In the KOSDAQ market, individuals were net buyers, purchasing 729.7 billion won, while foreigners and institutions were net sellers, offloading 372 billion won and 363.7 billion won, respectively.
Among the top market cap stocks, most, including Alteogen (-5.74%), EcoPro (-7.26%), EcoPro BM (-7.45%), Rainbow Robotics (-3.71%), JUSUNG Engineering (-4.91%), Wonik IPS (-5.27%), HLB (-3.13%), Rino Technology (-5.47%), and IOTech (-2.53%), saw declines.
The KOSDAQ, which has a high proportion of growth stocks, exhibited a contrasting trend to the KOSPI, affected by weakened investor sentiment due to rising U.S. long-term interest rates and selling pressure from foreign and institutional investors.
Lee Kyung-min, a researcher at Daishin Securities, noted, "The domestic market showed a strong performance after foreign and institutional selling created a supply gap, leading to increased net buying from other corporations. SK Hynix's decision to buy back 40 trillion won worth of shares attracted significant net buying from other corporations, while Samsung Electronics also rose on the momentum of shareholder returns."
He added, "The expansion of shareholder return momentum for Samsung Electronics and its affiliates has driven the index higher. However, the recent rise in Treasury yields following the U.S. Treasury's announcement of expanded buybacks and the potential for renewed economic sanctions against Iran continue to pose external uncertainties."
* This article has been translated by AI.
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