Kospi rises for first time in 5 sessions as Samsung Electronics, SK hynix rebound

Both the Kospi and Kosdaq opened higher Thursday for the first time in five sessions. The Kospi, which had plunged nearly 4 percent on Wednesday, gained more than 1 percent on the back of a rebound in semiconductor stocks including Samsung Electronics and SK hynix, though continued selling by foreigners and institutions kept gains in check. The Kosdaq surrendered all of its early gains and turned lower shortly after the open.

According to Korea Exchange, the Kospi stood at 6,602.83 as of 9:26 a.m., up 40.11 points, or 0.61 percent, from the previous session. The index had opened at 6,650.33, up 87.61 points, or 1.33 percent. Thursday marked the first time the Kospi opened above its previous close since Aug. 27, ending a four-session streak of lower opens.

The early gains partially offset Wednesday's 3.99 percent decline. At the same time, Samsung Electronics was up 0.80 percent at 252,500 won ($184), while SK hynix rose 0.74 percent to 1.625 million won. Both stocks had fallen sharply on Wednesday — Samsung Electronics by 4.02 percent and SK hynix by 4.73 percent.

Among other top-10 market cap stocks, Samsung Electronics preferred shares rose 0.49 percent, SK Square gained 0.71 percent and LG Energy Solution advanced 0.72 percent. Samsung C&T surged 3.22 percent and KB Financial Group rose 4.79 percent, standing out as the strongest performers among large-cap names. On the downside, Samsung Electro-Mechanics fell 0.43 percent and Samsung Biologics slipped 0.20 percent, while Hyundai Motor was flat.

On the Kospi, retail investors were the sole buyers. Following net purchases of 2.3 trillion won on Wednesday, individuals continued buying, posting net purchases of 133 billion won as of the same time Thursday.

Buybacks by Samsung Electronics and SK hynix, which have been helping support the Kospi's floor in recent sessions, also continued. Net purchases by other corporations — a category that reflects the two companies' buyback activity — reached 114.1 billion won at the same time, roughly matching the retail net purchase figure. Other corporations had posted net purchases for 11 consecutive sessions through Wednesday, with cumulative net purchases totaling 14.21 trillion won. Since the two companies launched their concurrent buyback programs, buying demand of around 1.6 trillion won has been flowing into the market on a daily basis.

Foreigners and institutions, meanwhile, extended their selling streak to five consecutive sessions. After net selling of 1.93 trillion won and 2.04 trillion won, respectively, on Wednesday, foreigners were net sellers of 207.1 billion won and institutions of 38.5 billion won on Thursday.

The Kosdaq was down 3.88 points, or 0.48 percent, at 800.10 at the same time, having opened up 10.33 points, or 1.28 percent, at 814.31 before giving back all of its gains and turning lower. Foreigners and institutions led the decline with net selling of 102.2 billion won and 14.9 billion won, respectively, while retail investors net bought 116.9 billion won in an effort to cushion the index.

The domestic market opened higher Thursday, lifted by an overnight rebound on Wall Street. All three major US indexes rose for the first time in three sessions as the recent surge in US Treasury yields showed signs of easing, drawing bargain hunters into semiconductor stocks as well.

The Dow Jones Industrial Average rose 0.56 percent from the previous session, the S&P 500 gained 0.46 percent and the NASDAQ Composite advanced 0.45 percent. The US 10-year Treasury yield climbed as high as 4.821 percent during trading — its highest level since November 2023 — before paring gains to close at 4.793 percent. The 30-year yield held steady at 5.266 percent, while the 2-year yield edged down 0.8 basis points to 4.383 percent. Weaker-than-expected US private payrolls data also helped limit the rise in yields.

Strength in US semiconductor stocks added to the positive tone for their domestic counterparts. Dell surged 15.81 percent after raising its annual sales and profit outlook on the back of growing AI server demand. Nvidia rose 3.21 percent, Micron gained 2.43 percent and Qualcomm advanced 2.01 percent, while the Philadelphia Semiconductor Index climbed 0.45 percent. SK hynix's American depositary receipts also rose 2.61 percent.

However, the US 10-year Treasury yield remains elevated at around 4.8 percent, and international oil prices extended their gains for a third consecutive session amid the US-Iran military confrontation. November-delivery Brent crude futures rose 1.04 percent, while October-delivery West Texas Intermediate futures gained 0.88 percent.

Market analysts attributed the domestic rebound to technical buying following Wednesday's steep losses and the easing of the sharp rise in US yields. Han Ji-young, a researcher at Kiwoom Securities, said the local market would "stage a rebound, driven by technical buying on the recognition of Wednesday's oversold conditions, the easing of the sharp surge in US 10-year yields, and the earnings surprise from Broadcom."