Opening lower on the 1st, the KOSPI closed higher on the back of net purchases worth 1.6 trillion won by other corporations. It managed to rise despite the resumption of military clashes in the Middle East between the United States and Iran and the headwind of the U.S. Federal Reserve's hawkish rate outlook.
The KOSPI index closed at 6,835.80, up 15.78 points (0.23%) from the previous session. The index opened at 6,784.29, down 35.73 points (0.52%) on the back of the previous day's decline on Wall Street and even slipped to the 6,730 level early in the session, but rebounded as dip-buying flowed in during the session and ended higher.
In the main board, individuals (-373.7 billion won), foreigners (-542.4 billion won), and institutions (-773.6 billion won) all rushed to sell, dumping shares, but other corporations alone made massive net purchases worth 1.6897 trillion won, leading the index higher. Most of the buying by other corporations is believed to be share buybacks by Samsung Electronics and SK hynix.
Among top KOSPI large caps, SK hynix(000660) finished at 1,693,000 won, up 19,000 won (1.14%) from the previous day, and Samsung Electronics also reversed higher intraday to 261,000 won, up 1,000 won (0.38%).
SK Square(402340) (2.89%), Samsung C&T (3.72%), SK (7.52%), and Shinhan Financial Group (2.02%) led gains among holding and financial names. In contrast, LG Energy Solution(373220) (-2.91%), Hanwha Aerospace (-3.99%), LG Electronics (-4.62%), and Samsung Electro-Mechanics (-1.92%) closed lower.
The securities industry said geopolitical risks intensified due to reciprocal airstrikes between the United States and Iran, a surge in global oil prices, and hawkish remarks by Federal Reserve Chair Kevin Warsh at the open weakened investor sentiment. But it noted that subsequent dip-buying focused on tech and active inflows from other corporations supported the downside.
Kang Jin-hyeok, a researcher at Shinhan Investment & Securities, said, "While other corporations supported the index floor through share buybacks, the selling by other investor groups slowed, helping the KOSPI recover its losses."
After reciprocal airstrikes between U.S. forces and Iran the previous day, West Texas Intermediate (WTI) jumped 2.83% to settle at $85.76 per barrel. Federal Reserve Chair Kevin Warsh delivered hawkish (favoring monetary tightening) remarks at the Jackson Hole symposium, and New York stocks fell across the board.
As expectations for a rate hike at the September Federal Open Market Committee (FOMC) meeting strengthened, the Dow Jones Industrial Average closed at 53,185.90, down 0.70% from the previous session. The Standard & Poor's (S&P) 500 and the Nasdaq also fell 0.33% and 0.12%, respectively.
The KOSDAQ index fell under combined selling by foreigners and institutions, finishing at 821.25, down 13.04 points (1.56%) from the previous session.
In the KOSDAQ market, foreigners and institutions were net sellers of 224.3 billion won and 276.3 billion won, respectively, dragging the index lower, while individuals alone net bought 508.6 billion won, absorbing supply.
Among KOSDAQ heavyweights, pharma-bio and large secondary battery names weakened together. Alteogen(196170) (-2.11%), EcoPro(086520) (-4.49%), EcoPro BM (-3.81%), Rainbow Robotics (-2.39%), HLB (-4.35%), and Peptron (-9.66%) all fell.