As share buybacks near completion, analysts warn of potential market pressure from foreign investors' selling
Category: Business
The KOSPI index closed at 7,017.91 on September 22, 2026, marking a 0.15% increase, buoyed by strong performances from major semiconductor stocks, including Samsung Electronics (삼성전자) and SK Hynix (SK하이닉스). This rise, which saw the index flirt with the 7,171.44 mark early in the trading session, was largely driven by optimism surrounding U.S. tech stocks, particularly in the semiconductor sector.
In the early hours of trading, the KOSPI surged by over 2%, propelled by a rally in U.S. semiconductor shares following positive market sentiment around the AI sector. The Nasdaq Composite had risen 2.26% to reach a record high, with companies like Meta and AMD leading the charge. Meta's new AI agent, Muse, received favorable reviews, contributing to its stock's 11% surge, and AMD saw its shares soar nearly 10% as it surpassed a market capitalization of $1 trillion.
As the trading day progressed, the KOSPI's gains began to dwindle, primarily due to substantial selling by individual investors, who offloaded a net total of 1.6 trillion won ($1.2 billion). Meanwhile, foreign investors recorded a net purchase of 756 billion won ($570 million), albeit at a much lower scale compared to individual selling. Analysts noted that the decline in the KOSPI's intraday gains was exacerbated by profit-taking behavior following the initial surge.
Samsung Electronics, which plays a substantial role in the KOSPI's performance, saw its stock price reach as high as 28,350 won before closing at 27,650 won, up 0.91% for the day. Similarly, SK Hynix peaked at 193,500 won but ended the day down 1.50% at 184,000 won. Both companies have been key drivers of the KOSPI's recent performance, especially as they engage in large-scale share buybacks, which have significantly supported the market.
According to reports, Samsung Electronics has purchased 41.8 million shares since August 24, 2026, amounting to a cumulative buyback of 10.85 trillion won ($8.2 billion) by September 21. SK Hynix, during the same period, bought back 14.75 million shares, totaling 25.51 trillion won ($19.4 billion). The completion of these buybacks, initially scheduled for November, is now expected to conclude earlier, raising concerns about a potential liquidity gap in the market.
Market analysts are worried that once the buybacks are complete, the KOSPI will have to rely heavily on foreign investment to maintain its current levels. The recent sell-off by individual investors indicates a cautious sentiment, as they may be reacting to broader economic uncertainties, including fluctuating oil prices and geopolitical tensions, particularly in the Middle East.
As the KOSPI index approaches its resistance level around 7,000, analysts suggest that the lack of strong buying support from foreign investors could lead to increased volatility. The recent sell-off by individuals and the mixed signals from foreign investors could create a challenging environment for the KOSPI to sustain its upward momentum.
With expectations of continued pressure from geopolitical events and fluctuations in global markets, the outlook for the KOSPI remains cautiously optimistic. The upcoming earnings reports from major companies, including Samsung and SK Hynix, will be closely watched as indicators of market direction.
In the meantime, the KOSPI's performance will likely be influenced by external factors such as the outcome of the upcoming U.S.-Iran negotiations and the performance of semiconductor stocks in the U.S. market. Analysts believe that if positive trends continue in these areas, it could provide the necessary support for the KOSPI to break through its current resistance levels.
As the market navigates these challenges, investors are advised to keep a close eye on the developments in the semiconductor sector and the broader economic indicators that could impact market sentiment. The next few weeks will be telling, as the completion of share buybacks by Samsung and SK Hynix coincides with potential changes in foreign investment patterns.
The KOSPI's next trading session will be particularly important as investors react to both domestic and international developments, with many hoping for a rebound that could stabilize the index above the 7,000 mark.