Foreign Investors Snap Up $722 Million of Samsung, SK Hynix Shares as Kospi Rebounds

Strong Super Micro results help lift sentiment

Bargain buying rises after semiconductor rout

Samsung Electronics and SK Hynix each surged nearly 6%, helping South Korea’s Kospi rebound as foreign investors returned to buy both chipmakers. The market is betting the semiconductor selloff may be nearing a turning point after foreigners extended net purchases of Samsung Electronics to a fourth straight session.

On Oct. 21, the Kospi closed up 3.29% at 5,735.66. The index rose from the opening bell, and a buy-side sidecar was triggered in the morning, temporarily suspending the effect of program buy orders. It recouped most of the previous session’s 3.73% decline and climbed back above 5,700 for the first time in two trading days. The Kosdaq rose 1.38% to 792.76.

Large-cap semiconductor stocks led the advance. Samsung Electronics climbed 5.67% to 223,500 won, while SK Hynix rose 5.81% to 1.294 million won.

Chip stocks advanced after U.S. AI server maker Super Micro Computer reported overnight results that topped both its guidance and market expectations. Confidence in AI spending improved, lifting sentiment toward semiconductor shares.

Foreign investors drove the rally. They bought 472.1 billion won of Samsung Electronics and 200.5 billion won of SK Hynix.

Samsung Electronics has now logged four straight trading days of net foreign buying since Oct. 16. Foreign investors bought 171.6 billion won on Oct. 16 and 539.5 billion won on Oct. 19, helping lift the index. Even on Oct. 20, when the broader market turned lower, they were net buyers of 404 billion won, helping limit losses. SK Hynix returned to net foreign buying on Oct. 21 for the first time in 19 sessions.

Brokerages view the recent foreign buying in semiconductor shares as bargain hunting after a sharp slump rather than a full reversal in flows. The rebound reflects bottom-fishing after steep losses, and it is still difficult to say supply and demand have turned decisively. Over the past four trading days, foreigners bought a net 1.5872 trillion won of Samsung Electronics, still less than the 1.9938 trillion won they sold in a single day on Oct. 15.

What brokerages are watching now is Big Tech earnings. Meta’s results due overnight are the next key test. If the company posts revenue and investment figures that beat forecasts, as Super Micro did, the undervaluation case for Samsung Electronics and SK Hynix could come back into focus and extend the rally. If not, the rebound may prove to be only a one-day bounce.

Kang Jin-kyu, Hankyung.com reporter josep@hankyung.com