◆Aju Economy Major News
▷Samsung and SK Hynix buy back 26.6 trillion won in shares, raising market concerns
- Samsung Electronics and SK Hynix have recently completed a share buyback totaling approximately 26.6 trillion won over the past three weeks, serving as a key support for the KOSPI market.
- Samsung purchased 29.8 million shares, accounting for 55.92% of the planned amount, worth 7.77 trillion won, while SK Hynix bought 10.95 million shares, or 45.49% of its planned buyback, totaling 18.8 trillion won. The share buyback represented 10.8% and 18.1% of their respective total trading volumes.
- During the same period, other corporations net purchased 25.15 trillion won in the KOSPI, while foreign and individual investors sold 11.4 trillion won and 15.77 trillion won, respectively, indicating that the buybacks by the two companies effectively supported market liquidity.
- Although Samsung's stock price rose only 0.97% during the buyback period, SK Hynix's stock increased by 7.2%, suggesting that the large-scale buybacks helped stabilize prices amid selling pressure from foreign and individual investors.
- However, if the current pace continues, the buyback may conclude earlier than the initially scheduled November, raising concerns about a potential liquidity gap. Analysts suggest that, given the lack of clear buying momentum in the market, a trading strategy may be more effective than aggressive directional investments for the time being.
◆Major Reports
▷Will rising prices lead to higher interest rates? [Sangsangin Securities]
- Both the U.S. August CPI and PPI increased, largely due to energy prices, with a notable difference in the rise of core inflation.
- In China, the PPI rose to 3.8%, while the CPI remained at 0.8%, indicating that companies are absorbing the increased production costs without fully passing them on to consumer prices.
- Therefore, it is difficult to predict future CPI increases based solely on PPI rises; the actual transmission of cost increases to consumer prices and expected inflation is crucial.
- The European Central Bank (ECB) has raised its growth forecasts for 2026 and 2027 alongside a 25 basis point interest rate hike, suggesting that the current tightening is not expected to significantly harm the economy.
- In the U.S., consumer sentiment is declining, with one-year expected inflation rising to 4.6%, indicating that future interest rate paths will depend not only on whether inflation exceeds 2% but also on how expected inflation affects actual price setting and purchasing power.
◆Major Announcements After Market Close (11th)
▷TSI extends short-selling restrictions (extension of short-selling ban)
▷Jusung Engineering extends short-selling restrictions (extension of short-selling ban)
▷Woori Technology designated as a short-selling restricted stock (short-selling ban applied)
▷Axvis (anticipated) designated as a short-selling overheated stock
▷Sangsangin Securities removes investment warning designation and anticipates re-designation
◆Fund Trends (as of 10th, excluding ETFs)
▷Domestic equity funds: -99.3 billion won
▷Overseas equity funds: -3.8 billion won
◆Key Schedule for Today (14th)
▷South Korea: Korean Exchange to implement after-market priority
▷Japan: July (final) industrial production MoM, July capacity utilization MoM
* This article has been translated by AI.
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