Kospi Gains as Chip Buybacks Offset Broad Investor Selling
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South Korea’s Kospi closed at 6,835.8 on Tuesday, up 0.23% as buybacks lifted Samsung (+0.38%) and SK Hynix (+1.14%) while trade was light at 263.7 million shares worth 17.5 trillion won ($12.8B) and foreign, institutional and retail investors sold net 491.9B, 634B and 539.8B won respectively. The index recovered from a Monday low near 6,617 on solid August exports and chip demand, but renewed U.S.-Iran airstrikes and Fed Chair Warsh’s hawkish Jackson Hole remarks weakened the won to 1,370.4 per dollar and pose risk-off pressure that could spill into crypto, DeFi, CEX and DEX liquidity and adoption.
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In Brief
- Kospi closed at 6,835.8 Tuesday, up marginally and led by Samsung and SK Hynix gains.
- Renewed U.S.-Iran strikes and hawkish Fed remarks pressured global markets overnight.
- Foreign, institutional, and retail investors were all net sellers despite the gain.
South Korea’s Kospi closed at 6,835.8 points on Tuesday, up 0.23%, as buyback-driven gains in Samsung Electronics and SK Hynix offset net selling from foreign, institutional, and retail investors alike.
The index marked its second straight gain, having opened 0.52% lower after fresh U.S.-Iran airstrikes and a hawkish Fed speech from Chair Kevin Warsh unsettled global markets. The Kospi has since recovered from a session low near 6,617 on Monday.
Chip Stocks Reverse an Early Slide
Wall Street had fallen overnight, with the Dow Jones Industrial Average down 0.7% and the S&P 500 off 0.33%, after Warsh’s Jackson Hole speech fanned concerns over a possible rate hike at the Fed’s meeting later this month.
The Kospi has climbed the past two days. Image Source: Trading View
However, the Kospi erased those losses in the afternoon as government data showed Korea’s August exports stayed solid on strong chip demand, extending the Kospi’s chip-driven rally. Samsung rose 0.38% and SK Hynix advanced 1.14%, both aided by recently announced buyback programs.
“External uncertainty dampened investor sentiment, but strong buying from big companies backed up the index,” said Lee Kyung-min, an analyst at Daishin Securities.
Sellers Outnumbered Buyers Despite the Gain
Trade volume was light at 263.7 million shares worth 17.5 trillion won ($12.8 billion), with advancers narrowly beating decliners 444 to 421. Foreign investors sold a net 491.9 billion won, institutions sold 634 billion won, and retail investors sold 539.8 billion won.
Oil refiners gained on rising crude prices, with SK Innovation up 7.81% and S-Oil up 1.07%. Meanwhile, Hanwha Aerospace fell 3.99% and Celltrion slipped 0.48%.
The won weakened 1.8 won to trade at 1,370.4 per dollar as of 3:30 p.m., reflecting broader risk-off pressure from the Middle East escalation.
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