KOSPI reverses losses as Samsung, SK hynix buybacks lift sentiment

The KOSPI index managed to overcome a sharp opening decline on Monday and end the day with a modest gain, buoyed by corporate share buybacks that reassured investors about market sentiment. The benchmark closed at 6,820.02, up 0.46 percent from the previous session, marking the first time the won had strengthened to this level against the dollar in 13 months.

As the day began with the index down 2.58 percent, large-cap stocks experienced a broad rebound in the afternoon, propelling the index to higher ground. Foreign investors were the primary sellers, offloading a net 640 billion won ($467 million) worth of shares, while institutional investors also offloaded 793 billion won. Retail investors joined in the selling, offloading 144 billion won.

However, corporate investors stepped in to counteract the selling pressure, purchasing stocks worth 1.57 trillion won and ending a nine-day streak of net buying on the KOSPI. This buying was driven by share repurchases, with Samsung Electronics initiating a buyback on August 24 under an employee compensation program and SK hynix acquiring about 700 billion won in shares.