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Korea Herald
3 days ago
- Business
- Korea Herald
Seoul shares snap two-day losing streak on chemical gains, hope for tariff talks
South Korean stocks finished higher Monday, led by gains in chemical shares, as investors welcomed signs of progress in Sino-US trade talks and looked to developments in tariff negotiations between South Korea and the United States. The local currency strengthened against the US dollar. The benchmark Korea Composite Stock Price Index added 15.76 points, or 0.52 percent, to close at 3,071.7, following a two-day losing run. Trade volume was moderate at 460.56 million shares worth 13.16 trillion won ($9.45 billion), with winners beating losers 488 to 395. Institutional and individual investors bought a net 469.2 billion won and 195.46 billion won worth of stocks, respectively, while foreigners net sold 651.42 billion won. The index opened higher and maintained its momentum, as investor sentiment was buoyed by news that the US and China had reached a deal on tariffs, though details have yet to be disclosed, sending the S&P 500 and the tech-heavy Nasdaq to all-time highs Friday. Eyes are also on ongoing negotiations between Seoul and Washington over the latter's aggressive tariff plan, with 10 days remaining before the US is set to resume its country-specific tariffs. President Donald Trump's administration has signaled openness to extending the pause on the new duties. In April, Trump suspended the imposition of reciprocal tariffs on trading partners, including 25 percent duties on South Korea, until July 8 to allow time for negotiations. "Foreign selling was driven by profit-taking after recent market rallies, but the market appears to have momentum for further gains," said Lee Kyoung-min, a researcher at Daishin Securities. Top cap shares finished mixed, with chemical shares leading the upturn of the index. Market bellwether Samsung Electronics lost 1.64 percent to 59,800 won, while chip giant SK hynix soared 2.82 percent to 292,000 won. Major battery maker LG Energy Solution surged 3.12 percent to 297,000 won, and top chemical firm LG Chemical gained 1.2 percent to 211,550 won. No. 1 steelmaker POSCO Holdings advanced 0.38 percent to 261,000 won. Nuclear power plant manufacturer Doosan Enerbility spiked 3.95 percent to 68,400 won on news that its president, Kim Jung-kwan, was nominated as industry minister. Bio shares drifted lower. Leading biotech firm Samsung Biologics lost 0.4 percent to 992,000 won, and Celltrion edged down 0.19 percent to 159,600 won. Carmakers also lost ground. Top carmaker Hyundai Motor dipped 0.73 percent to 203,500 won, and its sister Kia Motors lost 0.82 percent to 96,900 won. Leading financial firm KB Financial went up 0.27 percent to 110,900 won, while defense giant Hanwha Aerospace sank 4.72 percent to 848,000 won. Top online portal operator Naver increased 1.94 percent to 262,500 won, while Kakao, the operator of the country's dominant mobile messenger, tumbled 1.48 percent to 60,000 won. The local currency was quoted at 1,350 won against the greenback at 3:30 p.m., up 7.4 won from the previous session. (Yonhap)


Korea Herald
4 days ago
- Business
- Korea Herald
Kospi heads for biggest first-half gain in 26 years
Postelection rally drives 27% surge, but analysts warn of overheating risks South Korea's benchmark Kospi surged 27 percent in the first half of 2025, its strongest performance in over two decades, as investor optimism swelled under the new administration. But with valuations stretched, analysts warn the rally may be overheating the market, raising the risk of a correction. The index jumped from 2,399.49 at the end of last year to 3,055.94 on Friday, according to Korea Exchange data. The gain is more than five times the 5.4 percent rise seen in the same period last year and marks the steepest first-half increase since 1999, when the Kospi soared 57 percent amid the dot-com boom. Other historic first-half rallies were recorded in the 1980s, when Korea enjoyed broad-based growth amid a weak dollar, low interest rates and falling oil prices. The Kospi climbed 51 percent in the first half of 1987, 49 percent in 1986 and 41 percent and 34 percent in each of 1981 and 1988. More recently, the main board rose 23.6 percent in the first half of 2009, as markets rebounded from the global financial crisis. With Monday as the last trading day left in the first half, the Kospi is on track to notch its biggest first-half gain in 26 years, provided it does not fall by more than 2.95 percent. A sharper drop would still likely leave the index with its strongest start to a year since 2009. Much of the surge came in the past month, with the Kospi jumping 13.2 percent in June alone. The rally has been driven by the resolution of political uncertainty and expectations of market-friendly policies under President Lee Jae Myung, who has pledged to lift the Kospi to 5,000 points through measures aimed at revitalizing capital markets and boosting corporate competitiveness. Still, signs of overheating are mounting. As of Thursday, 10 stocks had been designated as an 'investment risk' — the highest warning level under the Korea Exchange's market monitoring system — up from six in the same period last year. 'Investment alert' designations rose 55 percent to 175, while 'investment caution' flags climbed 27 percent to 1,176 over the same period. The trend intensified in June, with 30 stocks labeled 'short-term overheated' as of Thursday — nearly triple March's tally of 11, and significantly above the 22 and 17 recorded in April and May, respectively. Experts also warned that external risks could weigh on market sentiment. Washington granted a three-month reprieve until July 9 on 'reciprocal tariffs' targeting South Korean imports, aiming to reach a bilateral deal on revised trade terms. 'With the Kospi nearing an all-time high, upcoming noise from tariffs and political events could increase pressure for profit-taking,' said Lee Kyoung-min, an analyst at Daishin Securities. 'The Kospi is in overbought territory, and the 90-day grace period for reciprocal tariffs is coming to an end,' said Lee Eun-taek, an equity strategist at KB Securities. 'Tariff threats are highly likely to resurface, and while such risks are nothing new, the market is unlikely to remain unaffected — especially amid growing concerns over an economic slowdown.' After crossing 3,000 points for the first time in nearly 3 1/2 years on June 20, the Kospi quickly climbed past 3,100 the following session, approaching levels last seen in September 2021 and nearing its all-time high of 3,305 set in July 2021. Even so, many analysts expect the Kospi to continue climbing toward year-end, viewing any pullback as a buying opportunity, depending on earnings momentum. 'For policy-driven sectors such as nuclear power, software, and finance, it's wiser to wait for a pullback rather than chase the rally, while undervalued sectors — such as semiconductors, automobiles and retail — may present opportunities as capital rotation continues across industries,' said Daishin's Lee Kyoung-min. Shinhan Securities strategist Noh Dong-kil, who forecasts the Kospi could reach as high as 3,400 points by year-end on a valuation rerating, emphasized the growing importance of earnings. 'After the liquidity rally, earnings will become the key variable,' Noh said. 'There's a risk that third-quarter results may fall short of expectations due to weakening external demand. Only structurally growing stocks with low sensitivity to the economic cycle will be able to break through.'


Korea Herald
6 days ago
- Automotive
- Korea Herald
Seoul shares end lower for 2nd day on profit-taking
South Korean stocks fell for the second-straight session Friday as investors continued to cash in recent gains. The local currency fell against the US dollar. The benchmark Korea Composite Stock Price Index dropped 23.62 points, or 0.77 percent, to close at 3,055.94. Trade volume was moderate at 377.4 million shares worth 13.8 trillion won ($10.2 billion), with losers outnumbering winners 659 to 245. Foreigners sold a net 855.4 billion won worth of local shares, while institutions and retail investors combined bought shares worth a net 805 billion won. Overnight, Wall Street ended higher on hopes that the United States could extend its pause on reciprocal tariffs, which is set to expire next month. The Dow Jones Industrial Average went up 0.94 percent, and the S&P 500 gained 0.8 percent, while the tech-heavy Nasdaq composite added 0.97 percent. "The Kospi, which had risen around 15 percent this month, apparently fell as profit-taking continued for the second session," said Lee Kyung-min, an analyst at Daishin Securities. The overall losses were led by battery and automotive shares, with top battery manufacturer LG Energy Solution plunging 3.03 percent to 288,000 won and leading automaker Hyundai Motor dropping 2.15 percent to 205,000 won. Internet portal operators and refiners also extended their losses. Top portal firm Naver went down 1.34 percent to 257,500 won, and leading refiner SK Innovation tumbled 2.49 percent. Chip shares traded mixed, with Samsung Electronics up 1 percent to 60,800 won and rival SK hynix falling 3.07 percent to 284,000 won. The local currency was trading at 1,357.4 won against the greenback at 3:30 p.m., down 0.5 won from the previous session. Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.1 basis point to 2.453 percent, and the return on the benchmark five-year government bonds declined 1.4 basis points to 2.585 percent. (Yonhap)


Business Recorder
7 days ago
- Automotive
- Business Recorder
South Korean shares decline on profit booking
SEOUL: Round-up of South Korean financial markets: South Korean shares fell on Thursday as investors booked profit after a recent rally on post-election policy optimism. The benchmark KOSPI closed down 28.69 points, or 0.92%, at 3,079.56 after falling as much as 2.31% during the session. The index has risen 14% so far this month. 'The KOSPI fell below the 3,100 level on increasing sales to book profits,' said Lee Kyoung-min, an analyst at Daishin Securities. South Korea President Lee Jae Myung, who took office earlier this month, asked the parliament to swiftly approve the $14.7 billion of extra government spending as the economy is in a 'desperate' situation across domestic consumption and exports. Among index heavyweights, chipmaker Samsung Electronics fell 1.79%, while peer SK Hynix gained 2.45%. Battery maker LG Energy Solution slid 0.34%. Hyundai Motor and sister automaker Kia dropped 3.46% and down 1.98%, respectively. Steelmaker POSCO Holdings shed 0.74%, and drugmaker Samsung BioLogics fell 0.50%. Automakers boost South Korean shares higher Of the total 936 traded issues, 181 advanced and 727 declined. Foreigners were net sellers of shares worth 579.4 billion won ($427.2 million). The won was quoted at 1,356.9 per dollar on the onshore settlement platform, 0.32% higher than Wednesday's close of 1,361.2. In the money and debt markets, September futures on three-year treasury bonds gained 0.04 point to 107.20. The most liquid three-year Korean treasury bond yield fell 0.3 basis point to 2.455%, while the benchmark 10-year yield lost 0.4 basis point to 2.799%.


Korea Herald
16-06-2025
- Business
- Korea Herald
Seoul shares spike 1.8% on bargain hunting in defense, energy, IT sectors
South Korean stocks closed sharply higher Monday, driven by bargain hunting and big gains in the defense, energy and IT sectors. The local currency rose against the US dollar. The benchmark Korea Composite Stock Price Index jumped 52.04 points, or 1.8 percent, to close at 2,946.66. Trade volume was heavy at 718.1 million shares worth 14.3 trillion won ($10.5 billion), with winners outnumbering losers 619 to 278. Retail investors and institutions net purchased 45.4 billion won and 252.9 billion won worth of local shares, respectively, while foreigners unloaded 322.4 billion won. "The Kospi rebounded after only a one-day fall as retail investors moved to purchase shares at bargains," Lee Kyoung-min, an analyst at Daishin Securities, said, noting the tensions in the Middle East will likely have limited impact on the South Korean stock market in the mid-to-long term. On Friday, major US indexes lost ground as Israel's airstrikes on Iranian military and nuclear facilities sapped investors' risk appetite. The Dow Jones Industrial Average lost 1.79 percent, the tech-heavy Nasdaq composite went down 1.3 percent, and the S&P 500 decreased 1.13 percent. In Seoul, major chipmaker SK hynix jumped 5.31 percent to 248,000 won, while its rival Samsung Electronics shed 1.89 percent to 57,200 won. Defense and energy shares were bullish in particular. Hanwha Aerospace gained 2.75 percent to 970,000 won, Hyundai Rotem soared 6.32 percent to 198,600 won, and Hanwha Systems shot up 18.01 percent to 64,200 won. Major nuclear power plant manufacturer Doosan Enerbility surged 9.16 percent to 59,600 won, and HD Hyundai Electric advanced 6.16 percent to 456,500 won. IT shares also gained ground, with top internet portal operator Naver adding 4.49 percent to 209,500 won, and Kakao, the operator of the country's dominant mobile messenger, rising 3.3 percent to 53,200 won. Shipbuilders were also strong, with HD Hyundai Heavy surging 5.03 percent to 449,000 won, and HD Korea Shipbuilding climbing 4.85 percent to 367,500 won. The local currency was quoted at 1,363.8 won against the greenback at 3:30 p.m., up 5.8 won from the previous session. (Yonhap)