U.S. Rate Relief and SK hynix’s W40 Trillion Shareholder Return Drive KOSPI Up 5.89% [fn Market Close]

[Financial News] The KOSPI (Korea Composite Stock Price Index) surged by nearly 6%, climbing above the 6,850 level. Investor sentiment recovered quickly as U.S. long-term Treasury yields eased after the U.S. Department of the Treasury expanded its buyback program, while SK hynix also announced a massive shareholder return plan.
On the 20th, the KOSPI closed at 6,852.58, up 381.41 points, or 5.89%, from the previous trading session. The index opened at 6,680.34, up 209.17 points, or 3.23%, and widened its gains during the session.
As the stock market jumped, a KOSPI buy-side circuit breaker was triggered at 9:57 a.m.
In the main board market, individuals and institutions sold a net 227.9 billion won and 487.3 billion won, respectively, while foreign investors bought a net 2.279 trillion won, driving the index higher.
The easing of the recent spike in U.S. long-term Treasury yields appears to have helped improve investor sentiment. The Treasury Department said it will expand buybacks of long-term bonds with 10 to 20 years and 20 to 30 years remaining to maturity to at least twice the current maximum of $2 billion per operation.
Kwon Hee-jin, a researcher at KB Securities, said, "The Treasury Department made clear that the policy backdrop is its intention to expand liquidity support in the long-term bond segment." She added, "It is not a fundamental solution, but it is aimed at easing the sharply worsened anxiety in the long-term bond market for now."
A sharp rally in major semiconductor stocks also lifted the index. In particular, sentiment improved significantly around chipmakers after SK hynix unveiled a large shareholder return plan the previous day, including 40 trillion won in treasury share purchases and the cancellation of all shares acquired.
Samsung Electronics, the market-cap leader, closed at 271,000 won, up 9.49% from the previous session. SK hynix also ended trading at 1,691,000 won, soaring 12.73%. Other large-cap stocks also rose sharply, including SK Square (11.85%), Samsung C&T Corporation (7.78%), and Samsung Life Insurance (7.61%).
The KOSDAQ Index also closed at 840.89, up 16.43 points, or 1.99%, from the previous session. It opened at 843.99, up 19.53 points, or 2.37%.


[email protected] Kim Hyun-jung Reporter