Samsung Electronics (005930.KS) and SK hynix (000660.KS) drove the KOSPI back above 6,900 on the 21st, as expectations of larger shareholder returns erased an early decline. The benchmark opened down more than 1% on a renewed rise in long-term U.S. Treasury yields, but the two chipmakers rallied and pulled the index higher. The KOSDAQ, by contrast, plunged nearly 5% as profit-taking hit biotech and semiconductor materials and equipment stocks.
The KOSPI closed at 6,912.95, up 60.37 points, or 0.88%, from the previous session, the Korea Exchange said on the 21st. The index opened at 6,759.95, down 92.63 points, or 1.35%, before trimming its losses through the morning and turning higher. It extended gains for a second straight day after surging 5.89% the previous day.
On the main board, institutions bought a net 207.8 billion won, while foreign and retail investors sold a net 423 billion won and 862.4 billion won, respectively. Although foreign investors were net sellers in the cash market, they bought more than 1 trillion won in KOSPI 200 futures during the session. Buying through other corporate entities, driven by SK hynix's on-market share repurchases, also helped lift the index.
Samsung Electronics and SK hynix led the advance. Samsung Electronics closed at 281,500 won, up 3.87% from the previous session, while SK hynix finished at 1.73 million won, up 2.31%. The gains came as expectations spread that Samsung Electronics would unveil a large shareholder-return plan, following SK hynix's decision to buy back and cancel 40 trillion won ($27.7 billion) in shares. Bloomberg reported that Samsung Electronics could announce a new shareholder-return package of 90 trillion to 110 trillion won that day.
The payout expectations spread across Samsung group stocks. Samsung Electronics preferred shares (005935.KS) jumped 8.26%, while Samsung Life Insurance (032830.KS) rose 10.61% and Samsung C&T (028260.KS) gained 5.75%. Bank stocks also drew bargain-hunting buyers, with KB Financial Group (105560.KS) up 2.69% and Shinhan Financial Group (055550.KS) up 2.97%. Defense and shipbuilding stocks that had recently rallied, however, fell on profit-taking, with Hanwha Aerospace (012450.KS) down 7.03% and HD Hyundai Heavy Industries (329180.KS) down 4.73%.
The mood on the KOSDAQ was the opposite. The index closed at 801.94, down 38.95 points, or 4.63%, from the previous session. It slipped to around 795 during the session, losing the 800 mark, before narrowly recovering late in the day. Foreign and institutional investors sold a net 370.3 billion won and 363.7 billion won, respectively, while retail investors bought a net 728.5 billion won.
As losses widened quickly, a sell-side sidecar was triggered early in the session, halting program sell orders on the KOSDAQ for five minutes. It was the 32nd sidecar triggered on the KOSDAQ this year and the 14th on the sell side. Volatility was high enough for a sell-side sidecar to be triggered again after just 16 trading days.
Biotech stocks, which had surged the previous day on positive news related to Moderna, retreated across the board. Alteogen (196170.KQ) fell 5.74%, while ABL Bio (298380.KQ) dropped 8.85%, LigaChem Biosciences (141080.KQ) 13.23% and Samchundang Pharm (000250.KQ) 7.71%. Semiconductor materials and equipment stocks that had recently rebounded also saw profit-taking, with Ecopro BM (247540.KQ) falling 7.45%, Ecopro (086520.KQ) 7.26%, Leeno Industrial (058470.KQ) 5.47% and Wonik IPS (240810.KQ) 5.27%.
Overnight, the U.S. 10-year Treasury yield climbed back to around 4.70%, remaining a drag on the domestic market. Still, analysts said that on the main board, expectations of shareholder returns from large chip stocks outweighed the pressure from U.S. yields and reversed the index's direction. "The strength came from the impact of SK hynix's on-market share buybacks, and Samsung Electronics' shareholder-return momentum added to it, driving the index higher," said Lee Kyung-min, an analyst at Daishin Securities.
