Corporate buybacks prop up KOSPI despite broad investor selling

Seoul stocks managed to rise slightly on Tuesday, with the KOSPI index holding above 6,800 even as net selling occurred from retail, foreign, and institutional investors. The benchmark index started at 6,784.29, down 0.52 percent from the prior session, before recovering slightly to close at 6,835.8, up 0.23 percent. All three primary investor categories were net sellers.

Foreign investors sold 486.7 billion won ($355 million) worth of shares, while institutional and retail investors each offloaded 634 billion won and 539.7 billion won, respectively. Companies, distinct from the main investor groups, managed to offset the losses by purchasing a net 1.62 trillion won. This buying, analysts believe, was driven by share buybacks, primarily from Samsung Electronics and SK hynix.

Samsung Electronics increased 0.38 percent to 261,000 won, while SK hynix rose 1.14 percent to 1.69 million won. Analysts noted that corporate buying could offer a short-term stabilizing force for the market, but it was unlikely to spark a long-term rally. "Corporate investors are providing a floor for the market, but they are not likely to lead a sustained recovery," one analyst commented.