KOSPI Rises 1% to Close at 2280 Level on Foreign and Institutional Buying

Samsung Electronics Rises Amid Semiconductor Market Recovery Expectations Despite Earnings Shock

[Asia Economy Reporter Kwangho Lee] The KOSPI index surpassed the 2,980 mark, supported by simultaneous net buying from foreign and institutional investors. Although it started the session with a decline, it ended higher, tracing an upward curve.

On the 6th, the KOSPI closed at 2,289.97, up 25.32 points (1.12%) from the previous trading day. The index opened at 2,253.40, down 11.25 points (0.50%) from the previous day. During the session, net buying by foreigners and institutions expanded, pushing the index up to 2,300.62, a gain of 35.97 points (1.59%) at one point.

In the KOSPI market, foreigners purchased stocks worth 316 billion KRW. Foreign investors have maintained a net buying position for five consecutive trading days since the 2nd, acquiring a total of 1.1729 trillion KRW during this period. Institutions also showed net buying of 245 billion KRW on the day. Conversely, individual investors sold stocks worth 567.5 billion KRW.

[Image source=Yonhap News]

Most of the top market capitalization companies rose. Samsung Electronics increased slightly by 1.37% to trade at 59,000 KRW, while LG Energy Solution (2.42%), LG Chem (2.24%), and SK Hynix (2.09%) also rose. By sector, construction (4.14%), non-metallic minerals (2.10%), steel and metals (1.90%), and insurance (1.80%) showed upward trends.

The key point of interest was Samsung Electronics' stock price. On the day, Samsung Electronics announced that its Q4 sales fell 8.58% year-on-year to 70 trillion KRW, and operating profit dropped 69% to 4.3 trillion KRW. Despite the earnings shock, the stock price rose.

This was because there was speculation that Samsung Electronics might reduce capital expenditures. Typically, the recovery cycle for DRAM semiconductor companies follows the pattern: 'reduction in capital expenditure (CAPEX) → inventory reduction in downstream industries → renewed increase in semiconductor demand.'

Lee Kyung-min, a researcher at Daishin Securities, explained, “If Samsung Electronics joins the trend of reducing capital expenditures this year, the timing for improvement in the global semiconductor supply-demand situation could be brought forward,” adding, “Financial stocks reflecting expectations of dividend increases and construction stocks benefiting from large-scale deregulation surged, driving the index.”

The KOSDAQ index traded at 688.94, up 9.02 points (1.33%) from the previous day. Foreign investors alone bought stocks worth 80.9 billion KRW, while individuals and institutions sold stocks worth 60.7 billion KRW and 10.6 billion KRW, respectively. Among the top market capitalization stocks in KOSDAQ, EcoPro BM (2.16%), HLB (11.47%), and Rino Industrial (3.15%) showed strength, while Kakao Games (-1.56%) and Pearl Abyss (-1.39%) declined.

This content was produced with the assistance of AI translation services.