KOSPI closes around 5,609, up 1% on institutional buying [Market Close]

According to The Financial News, the KOSPI ended trading around the 5,609 level, rising about 1%, driven solely by institutional buying. The rally was attributed to strong semiconductor export data and growing expectations for shareholder returns.
On the 11th, the KOSPI finished at 5,609.95, up 77.36 points (1.40%) from the previous day. The index opened sharply higher at 5,658.72, a gain of 126.13 points (2.28%) from the prior close, but later pared some of its early gains.
In the main stock market, institutional investors were net buyers of 781.4 billion won. In contrast, individual investors and foreign investors were net sellers of 508.1 billion won and 255.6 billion won, respectively.
Most large-cap stocks advanced. Samsung Electronics gained 1.17%, SK hynix rose 1.71%, Hyundai Motor added 1.14%, LG Energy Solution climbed 1.23%, Samsung Biologics jumped 4.21%, and SK Square increased 2.53%. On the other hand, Hanwha Aerospace fell 2.96%, and Doosan Enerbility slipped 1.17%.
By sector, securities (7.53%), insurance (4.37%), textiles and apparel (3.75%), financials (3.25%), retail (2.84%), non-metallic minerals (2.74%), pharmaceuticals (2.54%), and food, beverages and tobacco (2.16%) were among the strongest performers. Machinery and equipment (-1.17%) and IT services (-0.20%) declined.
Analysts said the recent strength in semiconductor exports helped improve investor sentiment. According to the Korea Customs Service (KCS), semiconductor exports from the 1st to the 10th of this month totaled 7.588 billion dollars, up 175.9% from the same period a year earlier.
Large share buyback cancellations also fueled expectations for shareholder returns at Samsung Electronics and SK Group. Samsung Electronics announced the previous day that it plans to cancel about 87 million of its treasury shares in the first half of this year, out of 105.43 million shares held as of the end of last year. SK Group likewise plans to cancel approximately 14.69 million treasury shares, representing all of its roughly 17.98 million shares excluding those earmarked for employee compensation.
Jungeun Lim, an analyst at KB Securities, explained, "News of strong semiconductor exports improved investor sentiment, and the electrical and electronics sector, led by Samsung Electronics and SK hynix, drove the gains." Lim added, "As the Third Amendment to the Commercial Act strengthens the principle of canceling treasury shares, the announcements by Samsung Electronics and SK Group of their cancellation plans further highlighted expectations for shareholder returns."
The KOSDAQ closed at 1,136.83, down 0.85 points (0.07%) from the previous session. It opened at 1,155.48, up 17.80 points (1.56%) from the prior close, but turned lower during the session.
On the KOSDAQ market, individual investors were the sole net buyers, purchasing 254.4 billion won worth of shares. In contrast, institutions and foreign investors sold 126.7 billion won and 81.3 billion won, respectively.

yimsh0214@fnnews.com Sanghyuk Lim Reporter