Kospi Gains 0.97% on Chip Rebound Despite Heavy Foreign Selling

South Korea’s Kospi rose on June 30, the final trading day of the first half, as semiconductor shares rebounded. The benchmark briefly traded above 8,570 intraday but trimmed its advance late in the session as institutional buying eased and foreign investors sold nearly 3.8 trillion won of stocks.

The Kospi closed 0.97% higher at 8,476.48. It opened up 0.26% at 8,416.70 and extended gains during the session.

Semiconductor stocks led the rally. Recent volatility in the sector followed Micron Technology’s earnings, which reinforced expectations for medium- to long-term demand and improved profitability. At the same time, concerns lingered over possible price increases for Apple products tied to higher chip costs and litigation over alleged collusion among memory makers. Even so, investors continued to bet on an earnings recovery, prompting bargain buying in large-cap chip stocks.

Trading flows were mixed. Foreign investors were net sellers of 3.8174 trillion won on the Kospi market. Institutions bought a net 2.9361 trillion won, while retail investors purchased a net 833.5 billion won.

Within the institutional category, securities firms bought a net 1.6657 trillion won, investment trusts purchased 961.9 billion won and private equity funds bought 246.4 billion won. Pension funds were net sellers of 36.1 billion won.

Among top market-cap stocks, Samsung Electro-Mechanics jumped 7.16%. Samsung Electronics climbed 3.41% and SK Square gained 3.48%. SK rose 6.24% and KB Financial Group added 3.45%. SK Hynix ended marginally higher. LG Energy Solution slumped 9.61%, while Samsung Biologics and Samsung Life Insurance fell 3.94% and 1.84%, respectively.

The Kosdaq closed down 0.48% at 916.18. It opened 0.50% higher at 925.21 but surrendered its gains and turned lower. On the Kosdaq, foreign investors and institutions were net sellers of 241.8 billion won and 143.0 billion won, respectively. Retail investors were net buyers of 390.2 billion won, helping support the market’s downside.

Lee Kyung-min, an analyst at Daishin Securities, said expectations for improved earnings in the semiconductor sector remain intact. Bargain buying drove a sharp rebound in chip stocks, and that strength spread to semiconductor materials, parts and equipment names on the Kosdaq, adding upward pressure to the index.

In Seoul foreign-exchange trading, the won fell 4.2 won to close at 1,549.4 per dollar.

Kang Kyung-ju, Hankyung.com reporter qurasoha@hankyung.com