‘End of Share Buybacks, Options Expiration’ Outweigh Samsung Electronics Earnings; KOSPI Closes at 6,600 [fn Market Close]

[Financial News] The KOSPI closed lower as concerns over the end of share buybacks coincided with semiconductor ETF rebalancing and options expiration, despite Samsung Electronics posting record earnings.
According to the Korea Exchange on the 8th, the KOSPI closed at 6,625.93, down 177.97 points (2.62%) from the previous trading day. It opened at 6,808.68, up 4.78 points (0.07%) from the previous session, but turned lower early in the day, with losses widening in the afternoon.
On the main board, foreign and institutional investors were net sellers of ₩2.0195 trillion and ₩1.296 trillion, respectively. Individual investors and other corporations were net buyers of ₩2.5494 trillion and ₩763.1 billion, respectively.
Among the largest companies by market capitalization, Samsung Electronics, which reported its third-quarter results that day, fell 2.42%. Other major AI semiconductor stocks also weakened, including SK hynix (-2.44%), SK Square (-8.06%) and Samsung Electro-Mechanics (-3.62%). Hyundai Motor (-3.42%), KB Financial Group (-3.38%), Samsung Biologics (-4.54%) and Samsung Life Insurance (-4.27%) also closed lower.
Most sectors also weakened. Losses were steepest in financials (-4.11%), transportation equipment and parts (-3.94%), pharmaceuticals (-3.69%), IT services (-3.54%), retail (-3.42%) and insurance (-3.23%), in that order.
Samsung Electronics posted operating profit of ₩107.4 trillion for the third quarter, a record high for a single quarter, but the market weakened. With the end of share buybacks by large-cap companies approaching, the market was weighed down by the fact that the earnings announcement that day offered no outlook on business conditions in the year after next over the medium to long term. Analysts also said that ETF rebalancing and options expiration coincided ahead of the Hangul Day holiday break, creating supply-and-demand issues.
Han Ji-young, a researcher at Kiwoom Securities, said, “Since detailed figures are not being disclosed in this earnings announcement, market interpretations of results by business division may temporarily conflict,” adding, “Short-term supply-and-demand issues could come into play due to ETF rebalancing scheduled for today and the upcoming 12th, as well as options expiration today.”
The KOSDAQ closed at 892.27 on the day, down 6.16 points (0.69%) from the previous trading day. It opened at 898.19, down 0.24 points (0.03%) from the previous session.
On the KOSDAQ, institutions were net sellers of ₩85.1 billion. Individual and foreign investors were net buyers of ₩46.6 billion and ₩46.5 billion, respectively.

[email protected] Lim Sang-hyeok Reporter