Kospi rises 1.37% to close at 6,717

Institutions, other corporations net buy 2.8 trillion won

Foreign investors sell for 6th consecutive session

The Kospi is displayed at the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, on Wednesday. [Yonhap]
The Kospi is displayed at the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, on Wednesday. [Yonhap]

The Kospi rebounded Wednesday for the first time in five sessions, reclaiming the 6,700 mark despite lingering caution ahead of a US interest rate decision. Gains in heavyweight semiconductor stocks, led by Samsung Electronics and SK hynix, drove the advance.

According to Korea Exchange, the Kospi closed up 90.71 points, or 1.37 percent, at 6,717.97 — its first gain in five sessions.

The index opened down 16.02 points, or 0.24 percent, at 6,611.24 before steadily paring losses and turning higher.

On the main Kospi market, institutions were net buyers of 1.21 trillion won ($895 million). Other corporations also posted net purchases of 1.66 trillion won. Individuals and foreign investors were net sellers of 1.19 trillion won and 1.68 trillion won, respectively.

Foreign investors extended their selling streak to six consecutive sessions, offloading a combined 11.95 trillion won over that period.

Markets are closely watching the US Federal Reserve's interest rate decision, due to be announced early Thursday morning Korean Standard Time. Investors widely expect a 25-basis-point rate hike at the meeting. Attention is also focused on whether Fed Chair Kevin Warsh will signal further rate increases.

The semiconductor duo led the broader rally. News during trading that SK hynix was in talks with Intel over plans to produce memory chips in the United States sparked buying across the semiconductor sector.

"After the Kospi fell nearly 6 percent over four sessions, sentiment shifted toward oversold conditions in the short term," said Lee Kyung-min, an analyst at Daishin Securities. "Bargain buying flowed into the two semiconductor leaders, widening the index's rebound, while purchases by other corporations tied to buybacks also provided downside support."

Samsung Electronics closed up 2.01 percent at 253,500 won, while SK hynix gained 4.08 percent to finish at 1,759,000 won.

SK Square rose 2.00 percent, Samsung Electro-Mechanics gained 4.86 percent, and LG Energy Solution edged up 0.41 percent.

Hyundai Motor fell 1.36 percent, Samsung Biologics slipped 0.21 percent, and Hanwha Aerospace declined 0.75 percent.

The Kosdaq closed up 3.57 points, or 0.44 percent, at 815.98, marking a second consecutive session of gains.

The index opened down 4.04 points, or 0.50 percent, at 808.37 and slid as low as 801.12, down 1.39 percent, during the session. Bargain hunters then stepped in and pushed it into positive territory in the final stretch.

Individuals and institutions were net buyers of 13.5 billion won and 16.4 billion won, respectively, while foreign investors were net sellers of 28.4 billion won.

Among top-cap Kosdaq stocks, semiconductor-related names posted strong gains — Jusung Engineering rose 4.77 percent, Wonik IPS surged 10.15 percent, EO Technics advanced 4.82 percent, Leeno Industrial gained 2.49 percent, and Simtech climbed 4.14 percent.

On the downside, Ecopro fell 2.61 percent, Ecopro BM dropped 2.71 percent, Alteogen lost 1.73 percent, Rainbow Robotics declined 2.31 percent, and Robotis slid 4.78 percent.


moon@heraldcorp.com