Institutions drive Kospi back above 7,000, pouring W5.7tr into Samsung Electronics

Institutional investors have driven the Kospi back above the 7,000-point mark, posting nearly 6 trillion won ($4.41 billion) in net purchases this month, with the bulk of that money flowing into Samsung Electronics and its preferred shares.

According to Korea Exchange, institutions recorded 5.78 trillion won in net purchases on the Kospi from Sept. 1 through Tuesday, reversing a net selling position of more than 5 trillion won in August. Over the same period, foreign and retail investors sold a net 17.84 trillion won and 12.68 trillion won, respectively.

Samsung Electronics was the top institutional buy. Institutions accumulated 3.89 trillion won in net purchases of the stock this month and picked up an additional 440.6 billion won in Samsung Electronics preferred shares. Combined, the two positions totaled 4.33 trillion won — roughly 75 percent of institutions' total net purchases.

SK hynix, by contrast, saw 225.3 billion won in net institutional selling, highlighting a divergence in how institutions treated the country's two dominant semiconductor names.

Foreign investors sold both chipmakers. They offloaded a net 6.46 trillion won of SK hynix and 3.26 trillion won of Samsung Electronics over the same period, while also selling 488.1 billion won of Samsung Electronics preferred shares. The three securities ranked first through third among stocks most heavily sold by foreigners.

POSCO International ranked second among institutional net buys, drawing 1.04 trillion won in inflows. Hanmi Semiconductor (305.9 billion won), Shinhan Financial Group (257 billion won), KB Financial Group (252.6 billion won), Samsung Electro-Mechanics (247.6 billion won) and Doosan (236.2 billion won) also featured among the top institutional purchases.

On the selling side, Hyundai Motor led institutional net sales at 347 billion won, followed by Hyundai Mobis at 327.8 billion won. Naver (291.5 billion won), SK Square (259.9 billion won), APR (226.8 billion won) and SK hynix (225.3 billion won) also ranked among the most heavily sold.

The Kospi climbed 2.9 percent from 6,820 points on Sept. 1 to 7,017 points on Tuesday, reclaiming the 7,000 level. The index briefly tested the 7,100 mark during Tuesday's session before giving back its gains and closing off the highs. Caution ahead of the upcoming holiday and selling pressure near the 7,000 level capped further upside.

Analysts say investors should focus on sectors where earnings visibility is clear, particularly semiconductors and AI infrastructure.

Lee Jae-won, a researcher at Yuanta Securities Korea, said that foreign investor flows, the breadth of advancing stocks and sector trends all suggest the market has not yet entered a phase of broad-based, sustained gains. "The key question for further index upside is not resistance at the 7,000 level itself, but whether Samsung Electronics and SK hynix can break above the top of their trading ranges and whether foreign buying in the electronics sector continues," he said.

He added that for now, investors should differentiate rather than chase the index, focusing on sectors such as semiconductors and AI infrastructure where earnings and investment cycles are confirmed.

Kim Min-gyu, a researcher at KB Securities, said he believes it is time to take another look at semiconductors. "The fact that Anthropic's listing has been pushed back — first from September to October, and now to November — has given semiconductors some breathing room in terms of supply-and-demand dynamics," he said.

He also said that Meta's newly unveiled agent Muse, which could boost demand for CPUs and memory chips, may serve as a positive catalyst for the semiconductor sector — providing a fresh AI narrative beyond the widely known tailwind of strong earnings.