On the 26th, a day before Nvidia's earnings release, the KOSPI ended higher after wavering early in the session. It is seen as the index being lifted as Samsung Electronics(005930) and SK hynix(000660), which released large-scale shareholder return policies, moved to buy back their own shares.
The KOSPI ended at 6808.21, up 65.47 points (0.97%) from the previous trading day. Starting at a slightly weaker 6727 points, the index searched for direction in the morning, then turned higher in the afternoon on the back of strong buying by other corporations.
Funds from other corporations, presumed to be the buyback volumes of Samsung Electronics and SK hynix, flowed in strongly. Other corporations were net buyers of 1.598 trillion won in the main board. The amount net bought by other corporations over five trading days from the 20th reached 6.9 trillion won.
Individuals were net sellers of 2.2 trillion won, and foreigners were net sellers of 116.1 billion won. Institutions, which were net sellers early on, turned to net buying during the session and were net buyers of 764.9 billion won.
Samsung Electronics closed up 1.75% around 260,000 won, and SK hynix closed up 0.6% around 1.68 million won. Value stocks tied to Samsung Electronics' equity, such as Samsung Life Insurance and Samsung C&T(028260), also rose. KEPCO E&C(052690), for which the possibility of acquiring a stake in U.S. Westinghouse has been raised, and Korea Electric Power Corporation shares also climbed.
The macro environment was also supportive for stocks. The U.S. 10-year Government Bonds yield inched down to the 4.6% range, and the 30-year fell to the 5.1% range. These are the lowest levels since Aug. 5. It is seen as being affected by the U.S. Treasury's note that it would use the Treasury General Account (TGA) to fund buybacks. International oil prices also fell 3% as geopolitical tensions eased.
However, caution remains ahead of the U.S. personal consumption expenditures price index (PCE) tonight and Nvidia's earnings release early tomorrow.
Lee Kyung-min, a researcher at Daishin Securities, said, "Falling oil prices, easing geopolitical risks, and the government's will to stabilize interest rates helped restore risk appetite," but noted, "We need to check Nvidia's third-quarter guidance tomorrow and whether it can defend an operating margin of 75%."
The KOSDAQ ended at 826.87, down 0.28 points (0.03%) from the previous trading day. Foreigners and institutions were net sellers of 91.8 billion won and 105.2 billion won, respectively, dragging the index lower. Individuals alone were net buyers of 192.9 billion won. Alteogen(196170) and PharmaResearch were among the biotech gainers.