The KOSPI pushed past the 6,700 level in afternoon trading on the 16th, lifted by institutional buying led by pension funds. Foreign investors dumped more than 1.3 trillion won ($940 million) worth of shares, but institutions absorbed about 1 trillion won of that, helping large-cap chipmakers Samsung Electronics (005930.KS) and SK hynix (000660.KS) turn higher by more than 2% each.
The benchmark index stood at 6,714.21 as of 1:20 p.m., up 1.31% from the previous session, according to the Korea Exchange. Stocks opened little changed amid caution over high oil prices, a spike in U.S. Treasury yields and the upcoming U.S. Federal Open Market Committee rate decision, but the gains widened sharply in the afternoon as institutional buying accelerated.
On the main board, institutional investors bought a net 1.05 trillion won, driving the advance. Pension funds provided the main support, deploying more than 400 billion won. Foreign investors sold a net 1.33 trillion won and retail investors a net 929.2 billion won.
The KOSDAQ was at 811.84 at the same time, down 0.07% from the previous session. Retail investors bought a net 85.3 billion won on the junior market, while foreign investors and institutions sold a net 57.6 billion won and 24.7 billion won, respectively. Alteogen (196170.KQ) fell 2.12% as large-cap biotech shares extended their pullback, leaving the index trailing the KOSPI.
Chip heavyweights were at the center of the rally. Samsung Electronics, the most valuable listed company, traded at 253,500 won, up 2.01%. SK hynix jumped 3.49% to 1.749 million won. Samsung Electronics preferred shares surged 4.06% to 194,700 won, nearly double the gain in the common stock. The move followed a proposal on the 14th by activist fund Life Asset Management, which urged Samsung Electronics' board to allocate about 63 trillion won in remaining 2026 shareholder return funds first to buying back and immediately cancelling preferred shares, combining a valuation discount to the common stock with expectations of higher dividends.
Among other large caps, electronics, holding companies and power infrastructure names led gains. Doosan (000150.KS) surged 6.52%, Coway (021240.KS) rose 6.01%, Hyosung Heavy Industries (298040.KS) gained 4.61% and Sanil Electric advanced 4.91%. Samsung Electro-Mechanics (009150.KS) climbed 3.95%, Samsung C&T (028260.KS) 2.16%, LS ELECTRIC 1.80%, LG Energy Solution (373220.KS) 1.50%, HD Hyundai Electric (267260.KS) 1.43% and SK Square (402340.KS) 1.30%.
Some manufacturers, platform operators and biotech shares fell. SK Innovation (096770.KS) dropped 3.03%, S-Oil (010950.KS) 2.96%, Doosan Enerbility (034020.KS) 2.32%, Hyundai Mobis (012330.KS) 2.41%, Kakao (035720.KS) 2.17%, NAVER (035420.KS) 1.94% and Hyundai Motor (005380.KS) 0.82%.
Overseas, risks persisted as supply-chain shocks from the Middle East pushed West Texas Intermediate crude above $105 a barrel and the U.S. 10-year Treasury yield topped 5.04% intraday. Still, analysts said bargain hunting flowed in strongly on expectations that uncertainty would ease immediately after the September FOMC meeting, scheduled for early on the 17th Korea time, since a 0.25 percentage point rate increase has already been priced in. "Trading stayed in a narrow range on a wait-and-see mood ahead of the FOMC, with the effects of high oil prices and interest rates continuing," said Kang Jin-hyuk, an analyst at Shinhan Securities. "With expectations of a U.S. rate increase prevailing, attention is growing over the policy path that follows."
