Latest news with #Kosdaq
Korea Herald
2 days ago
- Business
- Korea Herald
Kospi hits fresh high on easing global trade tensions, strong exports
Market watchers see room for further gains on Q2 earnings and policy tailwinds South Korea's Kospi climbed to a fresh annual high Tuesday, buoyed by overnight gains on Wall Street and optimism over easing global trade tensions. The benchmark index opened 0.58 percent higher at 3,089.64 and briefly surpassed the 3,130 mark around 9:35 a.m. It extended gains to reach 3,133.52 by 10:20 a.m., up 2 percent and exceeding its previous peak of 3,129.09 set last Wednesday — the highest level in nearly four years. Buying momentum was strong Tuesday morning, with the index hovering around 3,130. However, the rally lost steam in the afternoon, with the Kospi eventually drifting toward 3,090 by the close. Foreigners returned to net buying on Tuesday after four straight sessions of heavy selling, during which they offloaded 2.2 trillion won ($1.6 billion) in Kospi shares. By 3:30 p.m., they had net purchased over 100 billion won, with their buying fluctuating notably throughout the session. Foreigners trailed institutional investors, who led the rally with a net purchase of over 500 billion won. Retail investors turned net sellers, unloading about 650 billion won to lock in gains. The Kosdaq also posted modest gains, opening 0.42 percent higher at 784.8 and climbing to an intraday peak of 788.38. Institutional investors were net buyers, while retail and foreign investors trimmed their positions. Equities drew support from a strong overnight performance in US markets, where the S&P 500 closed at a record 6,207.95 and the tech-focused Nasdaq hit 20,369.73. Analysts attributed Wall Street's gains to optimism ahead of second-quarter earnings and easing trade tensions, including Canada's withdrawal of a planned digital tax and a 2 percent jump in Apple shares on AI momentum. Investor sentiment in Seoul was further lifted by robust export figures and rising expectations for market-friendly regulatory reforms. 'Korea's exports rose 4.3 percent on-year in June, with semiconductors hitting an all-time high and autos marking their strongest June on record,' said Lee Jae-won, a strategist at Shinhan Securities. 'On top, a proposed amendment to the Commercial Act is being tabled at the Legislation and Judiciary Committee today, and opposition parties that once opposed it are shifting stance, raising expectations for its passage this week.' The ruling Democratic Party of Korea is pushing to revise the Commercial Act to improve corporate governance and bolster minority shareholder rights, aiming to pass the bill before the June provisional parliamentary session ends this week. Han Ji-young, an analyst at Kiwoom Securities, said it is too soon to call an end to the market's upward momentum. 'There are still several potential upside catalysts this month, including the impact of Trump's universal tariffs, the second-quarter earnings and the details of the Commercial Act amendment,' he said. 'The recent pullback in Korean equities should be seen as a period of consolidation (not a trend reversal).'
Korea Herald
2 days ago
- Business
- Korea Herald
Kospi hits new yearly high on US rally, easing tariff tensions
South Korea's Kospi climbed to a fresh annual high Tuesday, buoyed by overnight gains on Wall Street and optimism over easing global trade tensions. The benchmark index opened 0.58 percent higher at 3,089.64 and briefly surpassed the 3,130 mark around 9:35 a.m. It extended gains to reach 3,133.52 by 10:20 a.m., surpassing its previous peak of 3,129.09 set last Wednesday — the highest level in nearly four years. Strong buying momentum kept the index hovering around 3,130, with trading volume surpassing 530 billion won ($392 million) within the first 90 minutes. Equities drew support from a strong overnight performance in US markets, where the S&P 500 closed at a record 6,207.95 and the tech-focused Nasdaq hit 20,369.73. Sentiment was further lifted by hopes for a resolution to global tariff disputes and growing expectations for market-friendly regulatory reforms in Korea. Foreign and institutional investors led the rally, snapping up a net 200 billion and 480 billion won, respectively, as of 10:30 a.m. Foreign investors returned to net buying after four straight sessions of heavy selling, during which they dumped 2.2 trillion won worth of Kospi shares. Retail investors turned net sellers, offloading a net 640 billion won to lock in gains. The Kosdaq also posted modest gains, opening 0.42 percent higher at 784.8 and trading around 786.5 in the morning. Institutional investors turned net sellers, while both retail and foreign investors pared positions.
The Star
3 days ago
- Business
- The Star
South Korea halts digital currency project, pausing talks with banks
SEOUL: South Korea's central bank halted its digital currency testing project, telling participating banks it will temporarily pause discussions related to the initiative. The Bank of Korea (BOK) has temporarily suspended preparations for the second phase of its pilot initiative testing programme for a central bank digital currency which had been scheduled for the fourth quarter, a BOK official told Bloomberg News. The decision comes as the trajectory of the market for stablecoins has emerged as a key agenda item for South Korean President Lee Jae Myung, who took office earlier this month. Lee has sought to make it possible for a broad range of companies to get involved in stablecoins. A proposed bill by the ruling party would allow firms with equity as low as 500 million won (US$370,000) to issue won-based stablecoins. BOK Senior Deputy Governor Ryoo Sangdai last week said that any introduction of stablecoins should be done in stages and led by regulated banks, with safeguards to prevent market disruption and to protect consumers. South Korea has one of the world's most active digital-asset markets, which has driven massive gains in shares of companies linked to stablecoins. South Korea is already a hotbed for crypto activity. More than a third of the population, or around 18 million people, are active in digital-asset markets. On some days, trading volume on local crypto exchanges surpasses turnover on the Kospi and Kosdaq stock indexes. - Bloomberg
Business Times
3 days ago
- Business
- Business Times
Bank of Korea halts digital currency project, pausing talks with banks
[SEOUL] South Korea's central bank halted its digital currency testing project, telling participating banks it will temporarily pause discussions related to the initiative. The Bank of Korea (BOK) has temporarily suspended preparations for the second phase of its pilot initiative testing programme for a central bank digital currency which had been scheduled for the fourth quarter, a BOK official said. The decision comes as the trajectory of the market for stablecoins has emerged as a key agenda item for South Korean President Lee Jae Myung, who took office earlier this month. Lee has sought to make it possible for a broad range of companies to get involved in stablecoins. A proposed bill by the ruling party would allow firms with equity as low as 500 million won (S$468,623) to issue won-based stablecoins. BOK senior deputy governor Ryoo Sangdai last week said that any introduction of stablecoins should be done in stages and led by regulated banks, with safeguards to prevent market disruption and to protect consumers. South Korea has one of the world's most active digital-asset markets, which has driven massive gains in shares of companies linked to stablecoins. South Korea is already a hotbed for crypto activity. More than a third of the population, or around 18 million people, are active in digital-asset markets. On some days, trading volume on local crypto exchanges surpasses turnover on the Kospi and Kosdaq stock indexes. BLOOMBERG
The Sun
7 days ago
- Automotive
- The Sun
Oxford Innotech to ride on surging demand in engineering solutions industry growth
KUALA LUMPUR: Integrated engineering solutions provider Oxford Innotech Bhd is capitalising on the surging demand in the semiconductor, electric vehicle, and modular building systems sectors to fuel growth. With the outlook for Malaysia's engineering solutions industry remaining robust, projected to expand at a compounded annual growth rate (CAGR) of 10% to RM38.2 billion by 2027, the company is constructing a new 68,000 sq ft factory to bolster its production capacity and support future growth. The facility, expected to be completed within two years, underscores the company's commitment to tapping into the domestic and region dynamic industrial growth. 'Together with our new and ready capacity of 40,000 sq ft at our existing facilities, we will increase our total production area by 108,000 sq ft, translating into a 125% increase over our existing capacity. 'We will also purchase new machinery and equipment to strengthen our production capabilities,' Oxford Innotech managing director Ng Thean Gin said at the company's prospectus launch yesterday. When asked, Ng said the company will not have any significant impact from the US reciprocal tariffs, as 96% of the company's revenue contribution is local and only 4% is from overseas. When asked if they expect the revenue contribution from the overseas market to grow any further, he said the company does not foresee overseas contribution extending beyond 10% for the next one to two years. 'We do not anticipate our overseas revenue contribution to exceed 10%,' he said after the company's prospectus launch yesterday. With its HQ in Penang, OXB, through its subsidiaries (collectively known as the group), offers integrated engineering solutions, mechanical assembly solutions, as well as automation and robotic solutions. It serves as a one-stop solution provider, enhancing overall value chain efficiency and reducing customers' reliance on multiple vendors. Operating across five manufacturing facilities in Penang and Kedah, OXB caters to key sectors including semiconductor, electrical and electronics, automotive, and modular building systems. The group's clientele includes multinational corporations listed on, among others, the Nasdaq, Kosdaq, Singapore Exchange, and Bursa Malaysia, as well as local companies, with some business relationships spanning up to 18 years. Ng said the launch of the prospectus marks a significant milestone in the company's corporate journey. OXB is raising RM41.6 million through its IPO, issuing 143.5 million new shares (20.2% of the enlarged capital) and offering for sale 50 million existing shares (7% of the enlarged capital). From the proceeds, the company will utilise 55.5% (RM23.1 million) to fund a new factory, 26.9% (RM11.2 million) for machinery purchases and refinancing, 8% (RM3.3 million) for working capital, and 9.6% (RM4 million) for listing expenses. Of the 143.5 million new shares, 35.5 million are for Malaysian public application, 27 million for eligible directors, employees, and contributors (Pink Form Allocations), and 81 million via private placement to Miti-approved Bumiputera investors. For the 50 million existing shares under offer, 7.8 million are allocated to Miti-approved Bumiputera investors, and 42.2 million are allocated to selected investors through private placement. OXB will have a market capitalisation of RM205.9 million upon listing based on an enlarged issued share capital of 710 million shares and an IPO price of RM0.29 per share. OXB is scheduled to be listed on the ACE Market of Bursa Securities on July 29. Malacca Securities Sdn Bhd serves as the principle advisor, sponsor, underwriter and joint placement agent, while Kenanga Investment Bank Bhd is the joint placement agent. WYNCORP Advisory Sdn Bhd is the corporate finance adviser for the IPO exercise.
