The KOSPI opened with a gain of over 3% on the back of bargain hunting following a more than 5% drop the previous day and a stabilization in U.S. long-term interest rates. Notably, SK Hynix announced a plan to buy back and retire shares worth 40 trillion won, boosting investor sentiment in the semiconductor sector.
As of 9:09 a.m. on the 20th, the KOSPI was trading at 6,624.12, up 152.95 points (2.36%) from the previous trading day. The index started at 6,680.34, up 209.17 points (3.23%), before slightly reducing its gains.
U.S. stock markets experienced a slight rebound overnight as the rise in long-term interest rates eased. On the 19th, the Dow Jones Industrial Average rose by 0.20%, while the S&P 500 and the tech-heavy Nasdaq also increased by 0.20% each.
The U.S. Treasury Department's expansion of its buyback program for 10- to 30-year bonds helped stabilize long-term interest rates, positively impacting investor sentiment. The yield on the 10-year Treasury note fell to 4.64%, while the 30-year yield decreased to 5.18%.
However, semiconductor stocks showed mixed results. Micron fell by 0.4%, and SanDisk dropped by 3.5%. In South Korea, the rebound in semiconductor stocks was driven by bargain hunting following the previous day's sharp decline and SK Hynix's announcement of a significant shareholder return policy.
SK Hynix revealed that it would buy back and retire shares worth 40 trillion won over the next three months, equivalent to about 3.3% of its total outstanding shares. The company also decided to increase its shareholder return plan to over 50% of its free cash flow for 2025-2027, up from the previously stated 50% limit.
On this day, individual investors in the securities market made net purchases of 751.4 billion won, engaging in bargain hunting. In contrast, foreign and institutional investors sold a net 249.9 billion won and 551.8 billion won, respectively.
Among the top market capitalization stocks, Samsung Electronics (up 2.83%), SK Hynix (up 5.87%), SK Square (up 3.49%), LG Energy Solution (up 1.82%), Samsung Biologics (up 2.20%), and Samsung Life Insurance (up 4.17%) saw gains. Conversely, Samsung Electro-Mechanics (down 3.17%), Hyundai Motor (down 0.60%), Hanwha Aerospace (down 1.87%), and KB Financial (down 2.22%) experienced declines.
Notably, SK Hynix's announcement of a large-scale share buyback and retirement led to a rise of over 5%, partially recovering from the previous day's losses.
At the same time, the KOSDAQ index was trading at 845.43, up 20.97 points (2.54%) from the previous trading day. The index opened at 843.99, up 19.53 points (2.37%), and continued its upward trend.
In the KOSDAQ market, individual and institutional investors made net purchases of 68.9 billion won and 23.4 billion won, respectively, while foreign investors sold a net 85.2 billion won.
Among the top market capitalization stocks, Alteogen (up 10.21%), EcoPro (up 3.60%), EcoPro BM (up 4.01%), Rainbow Robotics (up 0.76%), JUSUNG Engineering (up 2.27%), Wonik IPS (up 2.93%), EO Technics (up 3.37%), Rino Technology (up 0.59%), and ABL Bio (up 3.01%) mostly saw increases.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, the domestic market is expected to rebound due to the influx of bargain hunting following the previous day's sharp decline, the stabilization of U.S. interest rates, and the positive impact of Moderna's stock surge on growth stock sentiment."
He added, "SK Hynix's decision to implement a large-scale shareholder return policy earlier than expected is significant. Considering the momentum of shareholder returns from leading stocks, the easing of the surge in U.S. long-term interest rates, and the reduction in global semiconductor concentration, there is potential for improved recovery momentum for the KOSPI and KOSDAQ, which experienced sharp declines this week."
* This article has been translated by AI.
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