Kospi opened higher on Samsung's record quarterly profit

but quickly reversed as foreigners and institutions sold

The Kospi is displayed at the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, on Thursday. The index opened higher immediately after the market open but soon fell, trading around the 6,800 level. [Yonhap]
The Kospi is displayed at the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, on Thursday. The index opened higher immediately after the market open but soon fell, trading around the 6,800 level. [Yonhap]

The Kospi reversed course early Thursday after opening higher on the back of Samsung Electronics' strong earnings, as the tech giant's shares gave back their initial gains and combined selling by foreign and institutional investors dragged the index lower.

According to Korea Exchange, the Kospi opened Thursday at 6,808.68, up 4.78 points, or 0.07 percent, from the previous session, lifted by Samsung Electronics' earnings results announced before the bell.

Samsung Electronics disclosed that its preliminary consolidated operating profit for the third quarter reached 107.4 trillion won ($80.2 billion), marking the first time a domestic company has surpassed 100 trillion won in quarterly operating profit — a record also among global big-tech firms. The announcement initially sent both Samsung Electronics and SK hynix shares into positive territory, pulling the broader index higher at the open.

However, as Samsung Electronics lost momentum and slipped into negative territory, the index quickly followed. The decline is being led by foreign and institutional investors. Retail investors are net buyers of 323.3 billion won on the Kospi, while foreigners and institutions are net sellers of 35.2 billion won and 48.8 billion won, respectively.

Among large-cap stocks, Samsung Electronics (-0.37%), SK Square (-2.28%) and Samsung Electro-Mechanics (-0.37%) are falling, while SK hynix (+0.52%), LG Energy Solution (+3.58%) and Samsung SDI (+2.31%) are rising.

Weakness on Wall Street overnight also weighed on domestic markets. All three major US indexes fell Wednesday (local time) as a sharp rise in US Treasury yields rattled investors. The Dow Jones Industrial Average dropped 0.66 percent, while the S&P 500 and NASDAQ each fell 0.22 percent.

The yield on the 10-year US Treasury note surged past 5.36 percent during trading, hitting its highest level since 2002, while the 30-year yield climbed to around 5.73 percent, adding further pressure on equities. Investor sentiment has been dampened by concerns that long-term Treasury yields could remain at decades-high levels, driven by inflation fears tied to rising global oil prices and the prospect of expanded US government fiscal spending.

Minutes from the Federal Reserve's September FOMC meeting also served as a headwind, reaffirming the possibility of an additional interest rate hike before year-end. Most participants assessed that it would likely be appropriate to raise the benchmark interest rate one more time by year-end, rekindling concerns about a prolonged period of high interest rates.

Kosdaq is also trading lower. The index opened at 898.19, down 0.24 points, or 0.03 percent, from the previous session, and has since extended its losses. Retail investors are net buyers of 96.4 billion won, while foreigners and institutions are net sellers of 74.2 billion won and 21.7 billion won, respectively.

Among top Kosdaq stocks by market cap, Alteogen (-7.39%), Rainbow Robotics (-2.13%) and HLB (-0.65%) are falling, while Ecopro (+0.87%), Ecopro BM (+2.57%) and Jusung Engineering (+0.61%) are rising.


th5@heraldcorp.com