The KOSPI index, which opened with a sharp drop on concerns about a U.S. rate hike, finished higher. As Samsung Electronics and SK hynix moved to buy back their own shares to use for shareholder returns, they appeared to spur investor sentiment across the stock market.
On the 31st, the KOSPI index closed at 6,820.02, up 31.14 points (0.46%) from the previous trading day. The KOSPI index began trading at 6,613.58, down 175.30 points (2.58%), and as the early-session decline widened into the 3% range, it even fell below the 6,500 level. But as a large-scale buying spree flowed in from other corporations, the index pared losses and successfully reversed higher.
In the main board, foreigners and institutions as well as individuals were net sellers. Foreigners were net sellers of more than 400 billion won, and institutions were net sellers of 900 billion won. Individuals were net sellers of 200 billion won. In contrast, other corporations were net buyers of 1.5 trillion won.
Samsung Electronics and SK hynix, which had been down more than 3–4% early in the session, both rose more than 1%, and most large-cap stocks closed higher. LG Electronics(066570), which saw an inflow of foreign funds, climbed more than 7%, and SK Innovation(096770) also surged on news that SK On signed a large contract in the United States.
The market opened lower as U.S. stocks broadly fell over the weekend on rising U.S. Government Bonds yields. Kevin Warsh, chair of the U.S. Federal Reserve, hinted at the possibility of a rate hike at a symposium held in Jackson Hole, Wyoming, on the 28th.
After Warsh's remarks, U.S. Government Bonds yields rose, led by short-dated maturities. Many market experts had expected the Fed to hold rates at the September Federal Open Market Committee, but after the Jackson Hole meeting, expectations for a rate hike gained the upper hand.
Concerns about U.S. rate hikes weighed on Korea's stock market, but an inflow of funds from other corporations reversed the mood. Although foreigners at one point were net sellers of nearly 1 trillion won on the main board during the session, their net selling shrank as trading progressed.
The KOSDAQ market closed weaker, but the index's intraday decline narrowed sharply. The KOSDAQ index finished at 834.29, down 4.12 points (0.49%). It tumbled early in the session to the 800 level but ended with a modest loss.
While biotech shares mostly fell, secondary battery shares were strong. EcoPro(086520) and EcoPro BM rose.