KOSPI Reclaims 6,500 as Foreign Investors Buy More Than 2 Trillion Won

KOSPI (Korea Composite Stock Price Index) successfully reclaimed the 6,500 level, supported by gains in major semiconductor stocks. The rally was driven by a surge in foreign inflows as expectations grew that Samsung Electronics and SK hynix would soon unveil large-scale shareholder return policies.
According to the Korea Exchange on the 12th, KOSPI closed at 6,579.04, up 233.51 points, or 3.68%, from the previous session. Starting from the 6,400 level, the index jumped as much as 5.09% in the afternoon to 6,668.43, triggering a temporary suspension of program buy orders, known as a sidecar, for the first time in five trading days.
Buying by foreign and institutional investors drove the index higher. On the KOSPI market that day, foreigners posted net purchases of 2.8357 trillion won, while institutions bought a net 528.4 billion won. Foreign investors focused their buying on electronics and electrical equipment stocks, including semiconductors. Retail investors sold 3.192 trillion won worth of shares, taking profits.
A sharp rally in large-cap semiconductor stocks lifted the broader market. Optimism that Samsung Electronics and SK hynix, whose earnings have improved sharply amid the artificial intelligence (AI) boom, would announce the largest shareholder return policies in their history boosted investor sentiment. Samsung Electronics closed at 255,000 won, up 6.68% from the previous session, while SK hynix rose 5.54% to 1,504,000 won. SK hynix reclaimed the 1.5 million won level at the close for the first time in five trading days.
Other large-cap stocks also finished higher, including SK Square, up 8.36%, Samsung Electro-Mechanics, up 5.78%, and LG Energy Solution, up 1.13%.
The sharp rise in semiconductor giants appears to have drawn in bargain hunters after their share prices had softened earlier this month. In overnight trading on Wall Street, SK hynix's American Depositary Receipt (ADR) rose 4.7%, while memory chip makers such as SanDisk Corporation, up 2.68%, and Micron, up 0.87%, also strengthened. The Philadelphia Semiconductor Index climbed 0.87%.
Kang Jin-hyuk, an analyst at Shinhan Investment & Securities, said, "Despite lingering caution over prolonged Middle East negotiations and ahead of the July Consumer Price Index (CPI) release, KOSPI rose to the 6,600 level as foreign investors stepped in with non-directional program buying."
The KOSDAQ (Korea Securities Dealers Automated Quotations) index also reversed course, closing at 858.91, up 1.07 points, or 0.12%, from the previous session. After opening down 0.35%, the index narrowed its losses in the afternoon and managed to turn higher.
[email protected] Park Ji-yeon Reporter