On the 26th, the KOSPI index, which had been weighed down by selling from foreigners and retail investors, rebounded on buying by other corporations, presumed to be share buybacks by Samsung Electronics and SK hynix.
As of 11:33 a.m. that day, the KOSPI index was trading at 6,826.3, up 83.56 (1.24%) from the previous trading day. The index opened slightly lower at 6,727.25, rose to the 6,800 level intraday, and then fluctuated within the flat range. It has been rising since on the back of share buybacks.
The lift to the index is attributed to share buybacks by Samsung Electronics and SK hynix. Other corporations are net buyers of 663 billion won. Foreigners and retail investors are net sellers of 206.5 billion won and 501.2 billion won, respectively. Institutions, which had continued net selling until 11:15 a.m., turned to net buying of 60.8 billion won.
Samsung Electronics and SK hynix are each up 1.7%, trading around 260,000 won and 1.7 million won. As Samsung Electronics rose, companies whose equity value is reflected, such as Samsung C&T and Samsung Life Insurance, are also strong. Korea Electric Power Corporation(015760) is up 8% on news that it was offered an equity acquisition by U.S. Westinghouse.
The three major New York indexes closed higher overnight. The Dow Jones Industrial Average rose 0.3%, the Standard & Poor's (S&P) 500 rose 0.32%, and the Nasdaq rose 0.66%.
It was due to a pullback in international oil prices and U.S. Treasury yields. On reports that Iran and Oman are discussing setting up a temporary route through the Strait of Hormuz, West Texas Intermediate (WTI) fell to the $82 level. The U.S. 10-year Treasury yield also fell to 4.6%.
At the same time, the KOSDAQ index was trading at 824.5, down 2.65 (0.32%) from the previous trading day. Foreigners and institutions are net selling 115.5 billion won and 77.3 billion won, respectively, dragging the index lower. Only retail investors are net buying 189.6 billion won. Bio stocks, including PharmaResearch(214450), are strong.