KOSPI holds above 7,000 as semiconductor shares limit rebalancing losses

  • KOSPI closed at 7,033.92 after recovering from an intraday drop to 6,898.45.
  • Program selling totaled 7.0724 trillion won, including 5.6849 trillion won executed in the closing auction.
  • Samsung Electronics and SK hynix fell 0.19% and 0.16%, respectively, as rebalancing pressure was absorbed by buybacks and institutional and arbitrage demand.

South Korea’s KOSPI closed at 7,033.92 on September 10, down 17.72 points, or 0.25%, after recovering from an intraday low of 6,898.45. Quadruple witching and ETF and ETN rebalancing linked to Korea Exchange sector-index changes generated 7.0724 trillion won in net program selling, including 5.6849 trillion won in the closing auction. Samsung Electronics and SK hynix declined only 0.19% and 0.16%, respectively, as buybacks, futures-linked arbitrage and institutional demand absorbed anticipated index-related selling of as much as 1.8 trillion won. Foreign investors sold 2.4821 trillion won on the main KOSPI market, while other corporations bought 1.6671 trillion won. TSMC’s record August revenue also supported semiconductor sentiment. The KOSDAQ rose 0.79% to 836.92 and the won weakened to 1,339.2 per dollar as investors awaited U.S. inflation data.

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