KOSPI retakes lead from KOSDAQ as Samsung Electronics, SK hynix rebound

KOSPI retook market leadership from the KOSDAQ in the second week of August as Samsung Electronics and SK hynix rebounded and foreign investors returned to large-cap stocks. South Korea's main index rose 11.49% from Aug. 10-14 after falling 5.10% in the first week, while the KOSDAQ gained 8.24% in the second week after a 10.98% jump in the first, leaving monthly returns at 5.80% for the KOSPI and 20.13% for the KOSDAQ. The KOSPI closed at 6,977.94 on Aug. 14, up 2.42% on the day and nearing 7,000, as offshore investors swung from nearly 6 trillion won of net selling in the first week to more than 6.5 trillion won of net buying in the second; earlier exchange data showed about 72% of that weekly foreign buying went to Samsung Electronics and SK hynix. KOSDAQ trading value has recovered since tighter deposit rules for single-stock leveraged products took effect late last month, but continued foreign selling and an index stuck in the mid-800s have left analysts looking for fresh catalysts, including a proposed blue-chip tier tentatively called KOSDAQ Select.

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