KOSPI Ends Slightly Higher in Mixed Session... Approaching 3200

Samsung Electronics Dividend of 13 Trillion Won Released
KOSPI Shows Mixed Trends but Closes Higher
KOSDAQ Also Closes Higher

On the 16th, when the KOSPI index surpassed the 3,200 mark during the session, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. The KOSPI started at 3,194.08, down 0.25 points (-0.01%) from the previous close, and is showing an upward trend. Photo by Moon Honam munonam@

[Asia Economy Reporter Junho Hwang] On the 16th, the KOSPI showed mixed trends but ended higher. Despite the rise in the US stock market the previous day and the Chinese stock market on the same day, it fluctuated without a clear direction. In particular, expectations for a stock market rise were high as Samsung Electronics announced dividends amounting to 13 trillion won, but the market repeatedly fluctuated and closed slightly higher in the late session.

KOSPI Breaks 3200... After 55 Trading Days

On this day, the KOSPI started lower and then rose again, repeating ups and downs. It showed a volatility range from a high of 3206.76 to a low of 3185.67. However, it reversed to an upward trend in the late session, surpassing the 3200 mark on a closing basis for the first time in 55 trading days since January 25. The closing price was 3198.62, up 0.13% from the previous session. Individuals net bought 671.9 billion won, but foreigners and institutions sold 215.2 billion won and 479.1 billion won respectively, resulting in a slight rise in the market.

Among all stocks, 525 stocks rose, 310 stocks fell, and 72 stocks remained unchanged. By sector, the transportation and warehousing industry rose the most, increasing by 1.89%. This was followed by medical precision at 1.64%, pharmaceuticals at 1.32%, and distribution at 1.11%. Chemicals, non-metallic minerals, transportation equipment, construction, and telecommunications also experienced upward trends.

Among the top market capitalization stocks, Samsung Biologics stood out with a 3.10% rise, closing at 831,000 won. Naver (0.13%), LG Chem (0.67%), Samsung Electronics Preferred (0.27%), Hyundai Motor (0.43%), and Kia (2%) also showed gains.

Samsung Electronics closed at 83,900 won on the day, down 0.24% from the previous closing price. Although Samsung Electronics paid shareholders a total dividend of 13.1243 trillion won, its stock price declined. Individual net buying was notable, but institutional and foreign net selling was greater.

The dividend was paid as 354 won per common share (355 won per preferred share) plus a special dividend of 1,578 won per share. More than half of the total dividend amount, about 7.74 trillion won, went to foreign investors. As of the end of last year, foreigners held 55% of Samsung Electronics common shares and 79% of preferred shares. Although dividend payments were expected to increase exchange rate volatility due to repatriation demand, the won-dollar exchange rate closed down 0.29% at 1,116.30 won.

SK Hynix remained flat on the day, closing at the same price as the previous day at 0000 won. Lee Seok-hee, CEO of Hynix, stated that investment conditions would improve following the decision to split the parent company SK Telecom. However, he said, "We are currently not considering mergers and acquisitions (M&A) and plan to prioritize completing the Intel acquisition."

KOSDAQ Also Ends Higher

The KOSDAQ also closed higher on the day, rising 0.76% from the previous close to 1021.62. Individuals net bought 50.7 billion won and foreigners net bought 16.5 billion won, while institutions net sold 38.3 billion won, resulting in a market close with gains.

Among all stocks, 707 stocks rose, 583 stocks fell, and 110 stocks remained unchanged. By sector, pharmaceuticals and transportation showed gains in the 2% range, while textiles and semiconductors maintained increases in the 1% range.

Among the top market capitalization stocks, Seegene's rise was notable. It closed at 199,000 won, up 8.39%, following news that Seegene signed a contract to supply COVID-19 diagnostic kits to the Italian government. SK Materials also rose 6.57% to close at 356,000 won, and Alteogen closed at 93,000 won, up 2.65%.

Meanwhile, economic indicators released on the day showed that the economic recovery after COVID-19 is progressing gradually. South Korea's employment in March increased by 314,000 compared to the previous year. The employment rate rose by 0.3 percentage points to 59.8%. The economic activity participation rate expanded by 0.3 percentage points to 62.5%, and the unemployment rate fell by 0.1 percentage points to 3.9%. Also, China's GDP growth rate for the first quarter of this year was 18.3%, indicating a recovery trend. This is a strong recovery following 6.5% in the fourth quarter of last year. However, it slightly missed the expected 18.5%.

Lee Kyung-min, a researcher at Daishin Securities, analyzed, "The KOSPI fluctuated amid net selling of futures and spot by foreigners on this day," adding, "Unlike the strong US stock market driven by positive economic indicators, there was no clear direction across Asia including Korea."