KOSPI reverses losses as Samsung, SK hynix buybacks lift sentiment
Summary
The KOSPI rebounded Monday to close higher in Seoul as share buybacks by Samsung Electronics and SK hynix supported sentiment amid worries about a possible U.S. rate hike in September. The index ended at 6,820.02, up 0.46 percent, after opening 2.58 percent lower. The won strengthened to the 1,360-won range against the dollar for the first time in 13 months, while the Kosdaq fell 0.49 percent. Foreign, institutional and retail investors were net sellers, but corporate investors bought 1.57 trillion won.
Key Facts
- The KOSPI opened 2.58 percent lower before recovering to end at 6,820.02, up 0.46 percent from the previous session.
- Foreign investors sold a net 640 billion won, institutions sold 793 billion won, and retail investors sold 144 billion won.
- Corporate investors bought a net 1.57 trillion won on the KOSPI and extended their net-buying streak to nine sessions.
- Samsung Electronics started a buyback on Aug. 24 as part of an employee compensation program, while SK hynix has been purchasing about 700 billion won to 1 trillion won worth of its own shares every day since Aug. 20.
- The won-dollar exchange rate closed at 1,368.6 won per dollar, the lowest level since July 24 last year, while the Kosdaq fell 0.49 percent to 834.29.
Won strengthens to 13-month high
The KOSPI index and the won-dollar exchange rate are displayed in the dealing room of Hana Bank in Seoul, Monday. The benchmark KOSPI closed at 6,820.02, up 0.46 percent from the previous session, while the won-dollar exchange rate closed at 1,368.6 won per dollar, down 3.9 won. Yonhap
The benchmark KOSPI rebounded from a steep opening drop to close higher, Monday, as share buybacks by Samsung Electronics and SK hynix lifted the index amid concerns over a potential U.S. interest rate hike in September.
The won continued to strengthen, closing in the 1,360-won range against the dollar for the first time in 13 months.
The KOSPI closed at 6,820.02, up 0.46 percent from the previous session. The index opened 2.58 percent lower but gained momentum as large-cap stocks rebounded broadly in afternoon trading.
Foreign investors sold a net 640 billion won ($467 million) worth of shares, while institutions offloaded a net 793 billion won. Retail investors were also net sellers, unloading 144 billion won.
Corporate investors net purchased 1.57 trillion won, absorbing much of the selling pressure. They extended their net-buying streak on the KOSPI to nine sessions.
The buying has been supported by share repurchases from major companies, with Samsung Electronics starting a buyback on Aug. 24 as part of an employee compensation program and SK hynix purchasing about 700 billion won to 1 trillion won worth of its own shares every day since Aug. 20.
SK hynix climbed 1.27 percent to 1,674,000 won, while Samsung Electronics gained 1.17 percent to reach 260,000 won.
Concerns over a potential U.S. rate increase weighed on sentiment. Federal Reserve Chair Kevin Warsh struck a cautious tone on inflation at the Jackson Hole Economic Symposium in Wyoming, fueling concerns that the U.S. central bank could raise its benchmark interest rate in September.
The market also faced pressure from concerns that a surge in first-half revenue at China's CXMT could signal a growing challenge to established memory-chip makers Samsung Electronics and SK hynix.
Renewed military tensions between the U.S. and Iran over the weekend added to risk aversion, pushing global oil prices up more than 1 percent.
The Kosdaq fell 0.49 percent to 834.29.
The won-dollar exchange rate closed at 1,368.6 won per dollar, down 3.9 won from the previous session. The rate fell to its lowest level since July 24 last year, when it stood at 1,367.2 won per dollar.
Explore More
- Q.
- Q.
- Q.