KOSPI reverses losses as Samsung, SK hynix buybacks lift sentiment

The KOSPI index rebounded from a sharp decline on Monday, closing higher amid optimism over potential U.S. interest rate hikes in September. The South Korean won strengthened, hitting the 1,360-won level against the dollar for the first time in 13 months. The benchmark index finished at 6,820.02, marking a 0.46 percent increase from the previous trading session.

Opening 2.58 percent lower, the KOSPI regained momentum as large-cap stocks rallied in afternoon trading. Foreign investors offloaded a net 640 billion won worth of shares, while institutions sold a net 793 billion won. Retail investors were also net sellers, shedding 144 billion won. Corporate investors, however, were net buyers, purchasing 1.57 trillion won and absorbing much of the selling pressure.

This buying spree marked the longest stretch of net-buying on the KOSPI, extending to nine consecutive sessions. The buying activity was driven by share repurchases from major companies, with Samsung Electronics initiating a buyback program on August 24 as part of an employee compensation initiative. SK hynix also made significant purchases, acquiring approximately 700 billion won worth of shares to support the market.