Kospi rises 1.6% as foreign, institutional buyers return after six sessions

Kospi closed above the 6,600 level Friday with a gain of more than 1 percent, while Kosdaq surged nearly 3 percent to reclaim the 800 mark, as easing pressure on US Treasury yields drew foreign and institutional investors back into the domestic market for the first time in six trading sessions.

Kospi ended the day up 107.73 points, or 1.64 percent, at 6,687.21, according to Korea Exchange.

The index opened 74.88 points, or 1.14 percent, higher at 6,654.36 and climbed as high as 6,746.14 during the session before trimming some gains to finish around the 6,680 level.

On the main board, foreign investors and institutions posted net purchases of 503.4 billion won ($370 million) and 1.67 trillion won, respectively, driving the index higher — their first simultaneous buying in six trading sessions. Retail investors were net sellers of 3.72 trillion won.

Other corporations also recorded net purchases of 1.57 trillion won, extending their buying streak to 13 consecutive trading sessions. The activity reflected Samsung Electronics' buyback of its own shares for employee stock compensation and SK hynix's buyback for share cancellation.

The easing of US Treasury yield gains overnight on Wall Street lifted investor sentiment at home. All three major New York indexes rose more than 1 percent.

Concerns over further benchmark interest rate hikes eased after Federal Reserve Governor Christopher Waller struck a dovish tone. The yield on the 10-year US Treasury note fell 1.1 basis points from the previous session to 4.769 percent. One basis point equals 0.01 percentage point.

"Bargain buying flowed into sectors undervalued relative to their earnings as the upward pressure on US Treasury yields subsided," said Lee Kyung-min, an analyst at Daishin Securities. "The semiconductor sector in particular showed a pronounced advance."

Among large-cap stocks, Samsung Electronics closed up 2.20 percent at 255,000 won, while SK hynix jumped 3.20 percent to 1.65 million won. SK Square (6.12 percent), Samsung Electro-Mechanics (3.93 percent) and Hanwha Aerospace (0.76 percent) also advanced.

LG Energy Solution fell 1.92 percent, Samsung Biologics dropped 2.03 percent and KB Financial Group declined 3.32 percent.

Kosdaq closed up 23.29 points, or 2.95 percent, at 813.50 — its first gain in five trading sessions.

The index opened 12.11 points, or 1.53 percent, higher at 802.32 and extended its gains through the session.

In the Kosdaq market, foreign investors and institutions were net buyers of 262.3 billion won and 160.2 billion won, respectively. Retail investors were net sellers of 411.9 billion won.

Among Kosdaq large caps, Alteogen rose 1.94 percent, Ecopro gained 0.86 percent, Rainbow Robotics advanced 5.15 percent, Jusung Engineering climbed 6.13 percent and Wonik IPS surged 9.33 percent. Ecopro BM fell 0.47 percent and Silicon 2 declined 1.03 percent.

Skylabs, which made its Kosdaq debut Friday, closed 135 percent above its initial public offering price of 10,000 won per share, achieving a double — twice the IPO price.