Seoul Stocks Rise Nearly 1% on Chip Buybacks Ahead of Nvidia Earnings
Key Takeaways
- •The KOSPI rose 0.97 percent to 6,808.21, its first close back above the 6,800 level.
- •Institutional investors were net buyers, while foreign and retail investors sold a combined 2.36 trillion won.
- •SK hynix and Samsung Electronics both carried out stock repurchases, helping support the market.
- •Investors are waiting for Nvidia’s earnings as a key indicator for the AI infrastructure and advanced semiconductor market.
- •The Korean won weakened to 1,384.8 against the US dollar, while bond prices closed higher.
Seoul stocks closed nearly 1 percent higher Wednesday, supported by share repurchases from the country’s chip giants and easing external conditions, as investors awaited Nvidia’s earnings release. The Korean won weakened against the US dollar.
The benchmark Korea Composite Stock Price Index rose 65.47 points, or 0.97 percent, to finish at 6,808.21.
Trading volume was moderate, with 323.3 million shares worth 22.38 trillion won ($16.15 billion) changing hands. Advancers outnumbered decliners 584 to 273.
The index moved unevenly in early trading but gained momentum as institutional investors turned net buyers, purchasing 760.37 billion won worth of shares.
Foreign and retail investors were net sellers, unloading a combined 2.36 trillion won.
"The KOSPI has recovered above the 6,800 mark, supported by stock repurchases, while a drop in global oil prices and US Treasury yields helped boost investor sentiment," Lee Kyoung-min, an analyst at Daishin Securities, said.
SK hynix has been conducting a stock buyback of about 650,000 shares since last Thursday, while Samsung Electronics also carried out repurchases this week. The moves drew attention because the two companies are among the biggest drivers of the South Korean market, and their trading patterns often influence broader sentiment on the benchmark index.
Investors are also watching Nvidia’s upcoming earnings release, which is seen as a key barometer for the global artificial intelligence infrastructure market. For Korean chipmakers, the report is closely watched as a read-through on demand trends tied to advanced semiconductors and AI-related hardware.
Large-cap shares ended mixed. Samsung Electronics gained 1.75 percent to 261,500 won, while SK hynix edged up 0.6 percent to 1,688,000 won. Hyundai Motor fell 3.09 percent to 408,000 won, and Hanwha Aerospace slipped 1.36 percent to 1,087,000 won. KB Financial rose 0.12 percent to 166,600 won.
Shares in the nuclear sector advanced after reports that the US government has proposed South Korea jointly acquire shares in Westinghouse Electric Corp., a nuclear company owned by a Canadian private equity firm.
The Korean won traded at 1,384.8 won against the US dollar at 3:30 p.m., down 1.3 won from the previous session.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 1.4 basis points to 3.816 percent, and the return on the benchmark five-year government bonds edged down 0.6 percentage point to 4.033 percent. (Yonhap)
