Foreign Investors Buy 1.15 Trillion Won of Kospi Stocks, Driving Index Back Above 6,000

Source

Korea Economic Daily

Summary

Foreign and institutional investors were net buyers of 1.1504 trillion won and 1.1724 trillion won, respectively, helping lift the Kospi 6.63% to 6,012.44.
SK Hynix’s additional 60 trillion won shareholder return plan, which brings this year’s total shareholder return to 100 trillion won, helped drive foreign and institutional buying and strength in semiconductor stocks.
Brokerages said expectations for AI monetization, shareholder returns from the two leading chipmakers, and upcoming Alphabet and Microsoft earnings will be key variables for global equity markets and investor sentiment.

Forecast Trend Report by Period

6.6% surge restores 6,000 level

Biggest foreign net buying in 51 days

SK Hynix unveils 60 trillion won shareholder return

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. It was the first time the benchmark had reclaimed 6,000 since Oct. 14, when it finished at 6,008.81. A screen in the dealing room at Hana Bank’s headquarters in Seoul’s Euljiro district shows the closing levels of the Kospi and other indexes. Photo: Moon Kyung-duk/Korea Economic Daily

Foreign investors were the main force behind the Kospi’s rebound as markets reacted strongly to optimism over revenue prospects for artificial intelligence startup Anthropic and SK Hynix’s earnings report. After weeks of what local investors had dubbed a “Kospi exodus,” overseas investors returned to South Korea’s main board on Oct. 28 with their biggest buying spree in 51 days, helping the benchmark 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 buying of 797.6 billion won ($574 million) a day earlier, extending the streak to two sessions. The Oct. 28 tally was the largest since Sept. 7, when foreigners bought a net 3.4065 trillion won ($2.45 billion).

Institutional investors also added support, buying a net 1.1724 trillion won ($844 million). The Kospi rose 6.63% to 6,012.44, with foreign and institutional flows contributing heavily to the advance. Retail investors moved to lock in gains, selling a net 2.3215 trillion won ($1.67 billion).

Foreign investors piled into large-cap chip stocks that surged on the day. Samsung Electronics drew net buying of 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 climbed 9% to 11% and led the Kospi higher.

Brokerages attributed the buying to a recovery in US semiconductor sentiment overnight and SK Hynix’s announcement of a large shareholder return program. In the US session, AI infrastructure-linked stocks rallied after reports that Broadcom would help finance Anthropic’s purchases of high-performance semiconductors. Broadcom rose 4.0%.

SK Hynix’s plan for an additional 60 trillion won ($43.2 billion) in shareholder returns also improved sentiment. Combined with 40 trillion won ($28.8 billion) in share buybacks it recently completed, the company’s total shareholder return this year amounts to 100 trillion won ($72 billion). The move also fueled expectations that Samsung Electronics could announce a stronger shareholder return plan during its conference call on Oct. 29. “Expectations for shareholder returns from the country’s two biggest chipmakers led foreign and institutional net buying, helping the Kospi break back above 6,000,” said Kim Dae-jun, an analyst at Korea Investment & Securities.

Robot stocks also surge on Madison Huang news

Gains were broad-based across the market. On the Kospi, 582 of 915 listed stocks, or 63.6%, advanced. On the Kosdaq, 1,141 of 1,736 stocks, or 65.7%, rose.

Among semiconductor names, Jusung Engineering climbed 6.12%, Wonik IPS gained 6.08% and EO Technics rose 5.95%, adding to advances in Samsung Electronics and SK Hynix.

Robot-related stocks also rallied. The sector moved higher after local media reported 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, whose largest shareholder is Samsung Electronics, jumped 15.08%. The move gathered further momentum after news that Samsung Chairman Jay Y. Lee had inspected operations at the company. Robotis rose 9.76% and Doosan Robotics gained 6.89%.

Alphabet, Microsoft earnings in focus

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

Brokerages say the global rally in chip stocks will need support from hyperscaler earnings if it is to last beyond a one- or two-day burst. Attention is now turning to earnings from Alphabet and Microsoft, due early on Oct. 29 in Korea, after Anthropic’s securities filing raised expectations for AI monetization.

“Sensitivity to hyperscalers’ profitability has increased,” said Han Ji-young, an analyst at Kiwoom Securities. “Even if earnings beat consensus and investment plans are raised, what matters is whether concerns emerge over funding, including from core business revenue and free cash flow.”

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

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