After the KOSPI plunged 3.55% during trading, buybacks by Samsung Electronics and SK hynix supported supply and demand, with other corporations' net purchases reaching approximately KRW 1.58 trillion. Buying by the two companies drove the market's reversal.
On the 31st of last month, the KOSPI plunged 3.55% during trading but turned higher toward the close on net buying by other corporations. As foreign investors, retail investors and institutions were all net sellers at the same time, other corporations' net purchases expanded sharply.
Other corporations' net purchases totaled KRW 1.5773 trillion, with share buybacks by Samsung Electronics and SK hynix accounting for almost all of the total. This created an unusual supply-and-demand structure in which share buybacks influenced the direction of the index.
Buybacks by Samsung Electronics and SK hynix are still gathering pace. Samsung Electronics is continuing with a purchase plan of approximately KRW 15 trillion, while SK hynix is pursuing a plan of approximately KRW 40 trillion. According to disclosures on KIND, the execution rate remains around 20%.
Market participants believe foreign investors' supply and demand will need to recover, and expect other corporations' net buying to continue for at least another 1.5 months. Buybacks cannot be said to be an upside catalyst, making the future behavior of foreign investors the focus.