SEOUL, Sept. 21 (AJP) - Record semiconductor exports lifted South Korea's KOSPI back above 7,000 on Monday. The rally rested largely on domestic institutions and Samsung Electronics, while foreign investors were net sellers again by the close.
The benchmark index rose 1.65 percent or 113.49 points to 7,007.72, its first close above the mark since Sept. 9. Samsung jumped 4.98 percent. SK hynix gained only 0.59 percent.
Institutions bought a net 1.49 trillion won (US$1.08 billion), while foreigners sold a net 171.9 billion won, one session after ending a seven-day selling streak. Decliners outnumbered gainers 552 to 310.
The rally was triggered by a trade report released before the day's trading began. The Korea Customs Service, which compiles trade data from customs clearances, said exports totaled $71.4 billion for the first 20 days of this month, up 78.3 percent from a year earlier and the highest for the period on record.
Chips accounted for $34.1 billion, up 259.4 percent, or 47.8 percent of all exports.
Overnight cues added to it. Memory stocks rallied in New York on Friday after some overseas investment banks said NAND contract prices could rise 20 percent in the third quarter, local media reported. The Philadelphia Semiconductor Index gained 2.8 percent.
Samsung Electronics closed at 274,000 won ($199).
SK hynix finished at 1,868,000 won ($1,354). It had drawn the heaviest foreign selling last week. Foreigners dumped a net 3.42 trillion won of SK hynix and 2.61 trillion won of Samsung between Sept. 14 and 18, according to Korea Exchange data compiled by local outlet Etoday.
Share buybacks have been doing much of the lifting. In the Korea Exchange category for non-financial corporate buyers, net purchases reached 8.15 trillion won last week, driven by buyback programs at Samsung and SK hynix. Foreigners sold 8.76 trillion won over the same period.
SK square rose 4.45 percent to 1,127,000 won ($817). The holding company is SK hynix's largest shareholder. Samsung Electro-Mechanics gained 2.95 percent to 1,429,000 won ($1,036).
The junior KOSDAQ rose 1.11 percent to 836.3, recovering from early losses as chip-equipment and biotech shares gained.
The won strengthened 8.1 won to 1,379.9 per dollar in late trade.
Tokyo markets were closed for Respect for the Aged Day, a public holiday in Japan celebrated annually to honor elderly citizens, and will stay shut through Wednesday.
In China, the Shanghai Composite Index rose 0.85 percent to 3,945.1, led by drugmakers. Ten ministries, including the Ministry of Industry and Information Technology, recently released a five-year development plan for the pharmaceutical industry.
Harbin Pharmaceutical Group and Shenqi Pharmaceutical each rose the 10 percent daily limit, to 8.25 yuan and 9.25 yuan.
Hongsifang also closed limit-up at 28.14 yuan as chemical makers rallied on falling domestic crude futures. Chifeng Jilong Gold Mining fell 3.03 percent to 42.92 yuan as precious metals weakened.
Seoul has two more sessions before the long Chuseok holiday weekend. With foreigners still selling, holding above 7,000 will depend on the institutional and buyback money that has already done most of the lifting. Local brokerages point to U.S. inflation data and Micron's earnings after the break as the next test of the chip trade.
AJP Takeaways
- Chip exports for Sept. 1-20 rose 259.4 percent to $34.1 billion. That pushed the KOSPI to its first close above 7,000 since Sept. 9.
- Samsung Electronics gained 4.98 percent and institutions bought a net 1.49 trillion won ($1.08 billion). SK hynix rose only 0.59 percent.
- Foreigners sold again. With two sessions left before Chuseok, holding 7,000 depends on institutional and buyback money.
Tags: KOSPI, KOSDAQ, Samsung Electronics, SK hynix, SK square, Samsung Electro-Mechanics, Korea Customs Service, Korea Exchange, Philadelphia Semiconductor Index, Shanghai Composite Index, Ministry of Industry and Information Technology, Harbin Pharmaceutical Group, Shenqi Pharmaceutical, Hongsifang, Chifeng Jilong Gold Mining, Micron, NAND, Chuseok
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