The KOSPI index rebounded to close higher despite concerns over U.S. interest rate hikes and military tensions between the U.S. and Iran. After initially dropping to the 6,500 range, major semiconductor stocks like Samsung Electronics and SK Hynix helped the index recover to the 6,820 level.
On August 31, the KOSPI finished at 6,820.02, up 31.14 points (0.46%) from the previous trading day. The index opened at 6,613.58, down 175.30 points (2.58%), and fell as low as 6,547.76, marking a 3.55% drop at one point. However, it quickly reduced its losses and turned positive in the latter part of the session.
In the securities market, foreign and institutional investors sold a net 639.9 billion won and 793.1 billion won, respectively. Individual investors also sold 144.3 billion won. Despite the selling pressure from foreign, institutional, and individual investors, buying from other corporations supported the lower end of the index.
Among the top market capitalization stocks, semiconductor giants that had shown weakness early in the session turned positive. Samsung Electronics closed at 260,000 won, up 3,000 won (1.17%), while SK Hynix finished at 1,674,000 won, up 21,000 won (1.27%). Other gainers included Samsung Electro-Mechanics (2.60%), LG Energy Solution (2.16%), Samsung Biologics (2.15%), and Hyundai Motor (1.00%).
Conversely, Doosan Enerbility closed down 6.46% at 82,500 won. Hanwha Aerospace (-4.75%), HD Hyundai Heavy Industries (-1.64%), Samsung Life (-1.29%), and Celltrion (-0.94%) also saw declines.
The KOSDAQ index closed lower, recording a drop of 4.12 points (0.49%) to 834.29. It fell to as low as 805.14 during the session but mostly recovered its losses in the afternoon. Individual investors bought a net 253.5 billion won, while foreign and institutional investors sold a net 54.3 billion won and 201.5 billion won, respectively.
In the KOSDAQ's top market capitalization stocks, Alteogen (-3.91%), Pharma Research (-7.69%), Peptron (-4.78%), and ABL Bio (-5.46%) declined. In contrast, Robotechs (6.40%), Simtech (5.29%), EcoPro BM (2.20%), and EcoPro (1.22%) saw gains.
On this day, the domestic stock market opened sharply lower due to hawkish comments from Kevin Warsh, Chair of the U.S. Federal Reserve, at the Jackson Hole meeting, and the resumption of military tensions between the U.S. and Iran. The likelihood of a U.S. interest rate hike in September rose to about 60%, dampening risk appetite among investors.
However, as U.S. Treasury yields stabilized during the session, excessive caution eased. Expectations for the semiconductor sector were bolstered by Nvidia's strong performance, along with anticipation for South Korea's August export figures to be released the following day. Notably, Samsung Electronics and SK Hynix, which had initially dropped sharply, turned positive, reflecting a 'weak start, strong finish' trend for the KOSPI.
Lee Kyung-min, a researcher at Daishin Securities, stated, "The domestic stock market opened lower as it absorbed external variables such as the Jackson Hole meeting and military tensions between the U.S. and Iran. As the rise in U.S. Treasury yields stabilized, excessive caution eased, allowing the KOSPI to recover its losses and maintain a steady trend."
He added, "While external uncertainties have increased, Nvidia's solid performance has alleviated concerns about the semiconductor sector, and expectations for South Korea's August export figures remain. The buying from other corporations supported the semiconductor giants, which recovered their losses during the session, leading to a 'weak start, strong finish' trend in the domestic market."
* This article has been translated by AI.
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