Foreigners Snap Up $828 Million of Kospi Stocks, Driving 6.6% Surge Above 6,000

Source

Korea Economic Daily

Summary

Foreign and institutional investors were net buyers of more than 1 trillion won each on the Kospi, helping lift the index 6.63%.
An additional shareholder return program of 60 trillion won ($43.2 billion) from SK Hynix and expectations for Samsung Electronics shareholder returns fueled gains in large-cap semiconductor stocks.
With AI, semiconductor, and robot stocks leading the market higher, upcoming earnings releases from Alphabet and Microsoft were highlighted as key to future investor sentiment.

Forecast Trend Report by Period

6.6% surge restores the 6,000 mark

Foreign net buying hits a 51-day high

SK Hynix unveils 60 trillion won ($43.2 billion) in shareholder returns

US chip-stock sentiment rebound adds support

Robot shares jump on Madison Huang’s Korea visit

The Kospi closed up 6.63% at 6,012.44 on Oct. 28. The benchmark’s return above 6,000 was its first since Oct. 14, when it ended at 6,008.81. A screen at Hana Bank’s headquarters dealing room in Seoul’s Euljiro district shows the closing levels of the Kospi and other indicators. Photo: Moon Kyung-deok, Korea Economic Daily

Foreign investors led a rally fueled by hopes for AI monetization at US artificial intelligence startup Anthropic and SK Hynix’s earnings release. After weeks of a so-called Kospi exodus that weighed on the benchmark, overseas investors returned to the main board on Oct. 28 with their biggest buying in more than 50 days, helping the index reclaim 6,000.

Foreign investors post net buying for a second straight day

According to the Korea Exchange and Nextrade, foreign investors were net buyers of 1.1504 trillion won ($828 million) on the Kospi as of 4 p.m. on Oct. 28. That followed net purchases of 797.6 billion won ($574 million) a day earlier, marking a second straight session of net buying. The Oct. 28 total was the largest since Sept. 7, when foreigners bought a net 3.4065 trillion won ($2.45 billion).

Institutional investors also supported the rally, with net purchases of 1.1724 trillion won ($844 million). Their buying, along with foreign inflows, played a major role in lifting the Kospi 6.63% to 6,012.44. Retail investors moved the other way as profit-taking intensified, ending the session as net sellers of 2.3215 trillion won ($1.67 billion).

Foreign investors piled into large-cap semiconductor stocks that had surged during the session. Samsung Electronics ranked first in net buying at 385.9 billion won ($278 million), followed by SK Hynix at 374.8 billion won ($270 million) and Samsung Electronics preferred shares at 163.9 billion won ($118 million). Those stocks rose 9% to 11%, driving the index higher.

Brokerages attributed the return of foreign money to a recovery in US semiconductor sentiment overnight and SK Hynix’s announcement of a large shareholder-return plan. In US trading, Broadcom rose 4.0% after news that it would support funding for Anthropic’s purchases of high-performance semiconductors, lifting a broad group of AI infrastructure-related stocks.

SK Hynix also bolstered sentiment by announcing an additional 60 trillion won ($43.2 billion) in shareholder returns. Combined with the 40 trillion won ($28.8 billion) share buyback it recently completed, the company’s total shareholder returns this year reach 100 trillion won ($72 billion). The announcement also stoked expectations that Samsung Electronics could present a stronger shareholder-return plan during its conference call on Oct. 29. “Expectations for shareholder returns from the two semiconductor leaders led to net buying by foreigners and institutions, helping the Kospi climb back above 6,000,” Kim Dae-jun, an analyst at Korea Investment & Securities, said.

Robot stocks also rally on Madison Huang news

Gains were broad across both markets. On the Kospi, 582 of 915 listed shares, or 63.6%, rose. On the Kosdaq, 1,141 of 1,736 stocks, or 65.7%, advanced. Among semiconductor names, gains extended beyond Samsung Electronics and SK Hynix to Jusung Engineering, up 6.12%, Wonik IPS, up 6.08%, and EO Technics, up 5.95%.

Robot stocks also gained. The sector rose after reports that Madison Huang, a senior director in Nvidia’s robotics division and daughter of Chief Executive Officer Jensen Huang, will visit South Korea next month. Rainbow Robotics, in which Samsung Electronics is the largest shareholder, stood out with a 15.08% jump after news that Samsung Chairman Lee Jae-yong had inspected the company’s operations. Robotis rose 9.76% and Doosan Robotics added 6.89%.

Alphabet, Microsoft earnings in focus

Other markets in the region also rose on semiconductor strength. Japan’s Nikkei 225 gained 1.08%. Kioxia, a NAND flash producer, surged 13.76%, while substrate maker Ibiden rose 7.94%, helping lift the index. Taiwan’s Taiex advanced 2.04%, led by TSMC, up 1.04%, and MediaTek, up 6.94%.

Brokerages said the global equity rally led by semiconductor shares will need support from hyperscaler earnings if the AI monetization hopes highlighted in Anthropic’s securities filing are to last beyond a one- or two-day burst. Investors are now focused on earnings from Alphabet and Microsoft, due early on Oct. 29 in South Korea. “Sensitivity to hyperscalers’ profitability has increased,” Han Ji-young, an analyst at Kiwoom Securities, said. “Even if earnings beat consensus and investment plans are raised, the key question is whether concerns emerge over funding capacity, including core business revenue and free cash flow.”

Kang Jin-kyu, Korea Economic Daily reporter josep@hankyung.com

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