KOSPI rises for the first time in three trading days, influenced by SK Hynix shareholder return and decline in U.S. Treasury yields

The KOSPI is rising for the first time in three trading days due to SK Hynix's expansion of shareholder returns and a decline in long-term U.S. Treasury yields.

As of 9:13 a.m. on the 20th, the KOSPI stands at 6,628.17, up 157 points (2.42%) from the previous trading day.

SK Hynix announced after market close yesterday that it plans to acquire and retire 40 trillion won worth of its own shares as part of an expanded shareholder return initiative. SK Hynix intends to acquire 24.07 million ordinary shares through on-market purchases.

Overnight, U.S. stock markets rebounded slightly following the Treasury Department's announcement to expand its treasury buyback program. Buybacks involve repurchasing existing government bonds traded in the market to enhance liquidity in specific maturity segments and ensure smooth market functioning. As a result, long-term bond yields declined.

On the 19th (local time), the S&P 500 Index closed at 7,707.98, up 16.22 points (0.21%) from the previous session, while the NASDAQ Composite, centered on technology stocks, closed at 26,331.09, up 41.38 points (0.16%). The Dow Jones Industrial Average finished trading at 53,463.05, up 119.65 points (0.22%) from the prior session. Notably, Moderna surged 176% today after its experimental skin cancer vaccine, developed in collaboration with Merck, showed successful results in late-stage clinical trials.

Kiwoom Securities researcher Han Ji-young stated, "Today's domestic market is expected to rebound as low-price buying inflows following yesterday's sharp decline, combined with a stabilization of the rapid rise in U.S. interest rates and the stock surge effect from Moderna, have improved investor sentiment toward growth stocks centered on biotechnology."

In today's KOSPI market (based on integration between Korea Exchange and Next Trade), retail investors made net purchases of 743.9 billion won. Foreign investors and institutional investors recorded net sales of 245.1 billion won and 553.6 billion won, respectively.

Among KOSPI sectors, electrical and electronics rose more than 3%, while manufacturing, metals, securities, and pharmaceuticals gained over 2%. In contrast, telecommunications fell by more than 1%, while construction, transportation equipment and parts, and transportation warehouses remained roughly flat.

Among the top market capitalization stocks in the KOSPI, SK Hynix is up more than 6%. SK Square also rose more than 3%. Samsung Electronics, Samsung Life Insurance, and Samsung SDI are all rising by around 3%. However, Samsung Electro-Mechanics is down more than 3%. KB Financial Group is down over 2%, while Hanwha Aerospace and Shinhan Financial Group are falling by more than 1%.

The KOSDAQ stands at 837.56, up 13.10 points (1.58%) from the previous trading day.

In the KOSDAQ market, retail investors and institutional investors recorded net purchases of 70.9 billion won and 27.2 billion won, respectively. Foreign investors made net sales of 90.9 billion won.

All sectors in the KOSDAQ are rising. General services are up more than 5%. Financials are up around 4%, and pharmaceuticals are up around 3%. Paper and wood, IT (information technology), chemicals, non-ferrous metals, and machinery and equipment are all rising by more than 2%.

Driven by Moderna's sharp surge, top market capitalization stocks in the KOSDAQ related to pharmaceuticals and biotechnology are rising. AlteoGen is up around 8%, while Samchun Pharmaceutical and ABLE Bio are up around 2%. EcoPro BM and EcoPro are rising by around 4% and 2%, respectively.

The current won-dollar exchange rate stands at 1,388.2 won, down 0.9 won (0.06%) from the previous trading day.