KOSPI gains 32 points to 7,003 on tech bargain hunting despite rate, oil headwinds
Synopsis
Key Takeaways
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) ended 32.39 points, or 0.45%, higher at 7,003.74 on 2 October, as investors moved into beaten-down technology counters on bargain hunting, even as concerns over rising interest rates and elevated crude oil prices weighed on sentiment. The Korean won also firmed against the US dollar, closing at 1,350.6 won per dollar as of 3:30 pm local time, up 7.8 won from the previous session.
Market Overview
The index opened in negative territory before recovering through the session. Trade volume was relatively light, with 227.64 million shares worth 15.29 trillion won (approximately US$11.32 billion) changing hands. Advancing stocks outnumbered decliners by 500 to 359.
Buying was led by institutional investors, who net purchased 381.38 billion won worth of shares, offsetting net selling by foreign investors (143.78 billion won) and individual investors (1.72 trillion won).
Tech Heavyweights: Mixed Signals
Blue-chip technology names saw divergent moves. Samsung Electronics, the market bellwether, ended unchanged at 276,000 won. SK hynix, the chip giant, rose 0.44% to 1.84 million won, while its parent company SK Square gained 0.43% to 1.16 million won.
Samsung Electro-Mechanics, an electronics component affiliate of Samsung Electronics, was among the stronger performers, rising 1.28% to 1.58 million won.
What Analysts Are Saying
Han Ji-young, an analyst at Kiwoom Securities, said the market is navigating a complex macro backdrop. 'The domestic stock market is surrounded by macroeconomic uncertainties, including rising interest rates and increased volatility in oil prices, but expectations for an earnings recovery are improving, providing upward momentum,' Han said.
This framing aligns with a broader pattern visible across Asian markets in recent weeks: volatility driven by global rate signals, with selective tech buying providing a floor during down sessions.
Bond Market and Global Context
Bond prices moved higher in Seoul, with yields easing. The three-year Treasury yield fell 7.3 basis points to 3,937, and the five-year government bond yield shed 7.1 basis points to 4.129. Bond prices and yields move inversely.
Overnight on Wall Street, US markets also closed modestly higher after benchmark Treasury yields retreated from multi-decade highs. The Dow Jones Industrial Average rose 0.04%, the S&P 500 gained 0.19%, and the tech-heavy Nasdaq Composite edged up 0.04%, though gains were capped by rising crude oil prices.
What to Watch Next
With interest rate trajectories in the US and South Korea both in flux, and crude oil prices adding another layer of unpredictability, Korean equities remain sensitive to global macro developments. An improvement in corporate earnings expectations could provide a more durable floor for the KOSPI in the sessions ahead.