Kospi Rebounds Despite Iran Airstrikes... Samsung Electronics and SK Hynix Lead 'V-shaped Reversal'

▲ Kospi, Samsung Electronics, SK Hynix/AI Generated Image

The Kospi rose for two consecutive days, overcoming the shock from Iran. Samsung Electronics and SK Hynix led the rebound.

According to Be[in]Crypto on September 1 (local time), the Kospi closed at 6,835.8, up 0.23% from the previous trading day. In early trading, it fell by 0.52% due to renewed airstrikes between the US and Iran and concerns about interest rate hikes. The previous day, the Dow Jones Industrial Average fell by 0.7% and the S&P 500 by 0.33% in the US stock market. Hawkish remarks by Federal Reserve (Fed) Chairman Kevin Warsh also dampened investor sentiment.

It was semiconductor stocks that turned the tide. As South Korea's August exports showed a strong performance driven by demand for artificial intelligence (AI) semiconductors, the Kospi recovered all its early losses in the afternoon. Samsung Electronics rose by 0.38%, and SK Hynix by 1.14%. The recent large-scale share buyback plans announced by the two companies were also cited as factors pushing up stock prices.

However, selling by investors continued. Foreigners net sold 491.9 billion won, institutions 634 billion won, and individual investors 539.8 billion won. Trading volume was tallied at 263.7 million shares, and trading value at 17.5 trillion won. Lee Kyung-min, a researcher at Daishin Securities, commented, “External uncertainties dampened investor sentiment, but strong buying from large companies supported the index.”

Oil refiners also showed strength due to rising oil prices. SK Innovation rose by 7.81%, and S-Oil by 1.07%. In contrast, Hanwha Aerospace fell by 3.99%, and Celltrion by 0.48%. The won-dollar exchange rate recorded 1,370.4 won as of 3:30 PM, up 1.8 won from the previous trading day. As tensions in the Middle East escalated again, caution surrounding risk assets also continued.

[Article Key Summary]

-The Kospi rose for two consecutive days, closing at 6,835.8, up 0.23%, despite US-Iran clashes and interest rate hike concerns.

-Samsung Electronics and SK Hynix reversed early trading weaknesses, rising by 0.38% and 1.14% respectively.

-Despite selling by foreign, institutional, and individual investors, strong semiconductor exports and expectations of share buybacks supported the index.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*