South Korea's KOSPI closed at 6797.70 on the 22nd, up 49.75 points or 0.74%, after surrendering intraday gains that briefly pushed the index above 7000. The index reached 7166.00 during mid-session trading before retreating in the afternoon as institutional investors accelerated selling. Market analysts attributed the reversal to caution ahead of Alphabet's earnings announcement scheduled for early morning on the 23rd. The trading day reflected investor uncertainty over whether major tech companies will sustain semiconductor infrastructure investments, a key driver of South Korea's export-dependent equity market.
Foreign Investors Net Buy 2.63 Trillion Won as Institutions Sell
Foreign investors net purchased 2.63 trillion won in KOSPI stocks on the 22nd, marking three consecutive sessions of net buying. Individual investors sold 1.23 trillion won, while institutional investors offloaded 1.39 trillion won. Institutional selling remained around 100 billion won until 2 PM before accelerating sharply in the final hours. The majority of institutional selling occurred through financial investment accounts totaling 966.4 billion won, primarily representing ETF transactions. A buy-side circuit breaker was triggered at 9:06 AM shortly after market open.
SK Hynix Recovers 2 Million Won Intraday Before Closing Flat
SK Hynix briefly recovered the 2 million won level during trading on the 22nd, supported by gains in US memory chipmakers Micron and SanDisk. The stock closed near flat as individual and institutional selling pressure mounted and foreign net buying declined from over 1.6 trillion won to 1.26 trillion won by market close. Among large-cap stocks, Hyundai Mobis rose over 6%, Hyundai Motor gained over 4%, and Samsung C&T advanced over 3%. KB Financial and Samsung Electronics closed near flat, while Samsung Biologics and SK Square fell over 1%.
Alphabet Earnings to Signal Semiconductor Demand Outlook
Lee Kyung-min, head of FICC Research at Daishin Securities, stated that Alphabet's earnings contain expectations for expanded AI data center investments but also concerns about the sustainability of large-scale capex. Lee noted that the limited gains in semiconductor stocks on the 22nd reflected caution ahead of Alphabet's results. He emphasized the importance of confirming Google Cloud growth and data center capex guidance. Following Alphabet, Meta and Microsoft are scheduled to report second-quarter results on the 29th (local time), and Amazon on the 30th.
KOSDAQ Falls 0.30% as Won Weakens to 1480.1 per Dollar
The KOSDAQ index reversed to close at 751.09 on the 22nd, down 2.25 points or 0.30%, after recovering to 789.23 early in the session. Individual investors net bought 263.8 billion won, while foreign and institutional investors sold 84.2 billion won and 191.4 billion won respectively. Rainbow Robotics surged over 16% on news of Samsung Electronics establishing a dedicated robotics division. The won/dollar exchange rate closed at 1480.1 won, up 6.7 won from the previous session.
FAQ
Why did KOSPI reverse gains on the 22nd after reaching 7166.00?
Institutional investors accelerated selling after 2 PM, primarily through ETF transactions totaling 966.4 billion won. Market analysts attributed the reversal to caution ahead of Alphabet's earnings announcement scheduled for early morning on the 23rd, as investors awaited signals on semiconductor capex sustainability.
What did foreign investors do in the KOSPI market on the 22nd?
Foreign investors net purchased 2.63 trillion won in KOSPI stocks on the 22nd, marking three consecutive sessions of net buying. This contrasted with institutional selling of 1.39 trillion won and individual selling of 1.23 trillion won.
What will investors watch in Alphabet's earnings announcement?
Lee Kyung-min of Daishin Securities stated that investors should confirm Google Cloud business growth and data center capex guidance. The announcement is scheduled for early morning on the 23rd and will provide signals on HBM and server DRAM demand through 2026 capex guidance and 2027 investment trajectory.
