The KOSPI rebounded past the 6,700 mark for the first time in five trading sessions, shrugging off more than 1.6 trillion won in foreign selling. Institutional investors bought a net 1.2 trillion won as a view spread that tightening concerns ahead of the U.S. Federal Open Market Committee's rate decision had already been largely priced in, lifting the index on the back of large-cap chip and power equipment shares.
The KOSPI closed at 6,717.97 on the 16th, up 90.71 points, or 1.37%, from the previous session, according to the Korea Exchange. The index opened lower but snapped a four-session losing streak and settled above 6,700. On the main board, institutions were the sole net buyers at 1.21 trillion won. Foreign investors sold a net 1.68 trillion won and retail investors a net 1.18 trillion won. The KOSDAQ also closed higher, gaining 3.57 points, or 0.44%, to 815.98. Retail investors bought a net 13.9 billion won and institutions a net 15.9 billion won, while foreign investors sold a net 27.7 billion won.
Among the largest stocks by market value, the two chipmakers that had lagged recently advanced. Samsung Electronics (005930.KS) closed at 253,500 won, up 2.01% from the previous session, and SK hynix (000660.KS) ended at 1.759 million won, up 4.08%. Samsung Electronics preferred shares, which rose after an activist fund proposed a share buyback with immediate cancellation, gained 4.01% to 194,600 won, roughly double the rise in the common stock.
Electronics and power equipment shares also strengthened on continued expectations for artificial intelligence infrastructure demand. Doosan (000150.KS) surged 7.60%, while DB HiTek (000990.KS) rose 7.11%, Samsung Electro-Mechanics (009150.KS) 4.86% and SK Square (402340.KS) 2.00%. In power equipment, Hyosung Heavy Industries (298040.KS) climbed 4.35%, Sanil Electric 4.69%, Gaon Cable 3.96%, LS ELECTRIC 2.41% and HD Hyundai Electric (267260.KS) 1.00%. By contrast, Kakao Pay plunged 11.48% after a procedural vote on U.S. digital asset legislation failed. Nuclear power, shipbuilding and platform shares weakened, with KEPCO Engineering & Construction down 5.84%, Hyundai Engineering & Construction (000720.KS) down 2.97%, Doosan Enerbility (034020.KS) down 2.78%, HD Hyundai Heavy Industries (329180.KS) down 2.87%, Samsung Heavy Industries (010140.KS) down 2.42%, Hyundai Motor (005380.KS) down 1.36%, NAVER (035420.KS) down 2.18% and Kakao (035720.KS) down 2.90%.
Analysts said the four-session slide had left the market looking oversold in the short term, and that the possibility of a 0.25 percentage point rate increase at the September FOMC meeting was already reflected in bond yields and stock prices. "Ahead of the FOMC announcement, the market came to see the negative news as already priced in and being digested, which drew back money from investors who had trimmed positions in advance, along with buying to reverse earlier declines," said Lee Kyoung-min, an analyst at Daishin Securities (003540.KS). "Short-term valuation pressure on Samsung Electronics and SK hynix has eased, and the view held that the structural growth story of AI demand and improving memory market conditions remains intact, and that led the index rebound."
