Kospi Gives Up Most Gains on US-Iran Truce Talk Concerns, Ends Below 5,500
Summary
- The Kospi ended higher in the 5,490 range, but gave up much of its gains as concerns over ceasefire talks between the U.S. and Iran intensified.
- Samsung Electronics and SK Hynix both rose, helped by blockbuster first-quarter earnings and strength in semiconductor stocks, lifting investor sentiment.
- In both the Kospi and Kosdaq markets, retail investors and institutions were net sellers while foreign investors were net buyers, and the won-dollar exchange rate closed at 1,504.2 won.
Forecast Trend Report by Period
Samsung Electronics' blockbuster earnings
drive chip stocks higher
South Korea's Kospi swung between gains and losses on April 7 before ending higher in the 5,490 range. Investor sentiment improved after Samsung Electronics posted a first-quarter earnings surprise, but the benchmark surrendered much of its advance as concerns grew over a breakdown in U.S.-Iran ceasefire talks.
The Kospi closed up 44.45 points, or 0.82%, at 5,494.78. The index opened 1.87% higher and rose as much as 2.65% in early trading, briefly testing the 5,600 level, before giving back most of its gains in the afternoon.
On the main bourse, retail and institutional investors sold a net 342.6 billion won and 414.1 billion won, respectively, while foreigners bought a net 409.0 billion won.
Lee Kyung-min, an analyst at Daishin Securities, said reports that Iran had rejected a ceasefire proposal from the U.S. and demanded a complete end to the war had weighed on sentiment. Risk aversion strengthened as investors saw a lower chance of an agreement between Washington and Tehran.
Among Kospi heavyweights, Hanwha Aerospace rose 6.0%, SK Square gained 2.46%, Samsung Biologics advanced 1.99% and Hyundai Motor added 0.85%. LG Energy Solution fell 0.97%, Doosan Enerbility lost 0.84%, KB Financial Group slipped 0.81% and Kia declined 0.53%.
Semiconductor bellwethers Samsung Electronics and SK Hynix closed higher, rising 1.76% and 3.39%, respectively. The gains came after U.S. chip stocks including SanDisk and Micron rose overnight in New York, and after Samsung reported a record quarterly performance that beat market expectations.
The Kosdaq closed down 10.64 points, or 1.02%, at 1,036.73. The junior index opened 1.23% higher but turned lower at around 10:50 a.m. and extended its losses. On the Kosdaq, retail and institutional investors sold a net 32.0 billion won and 125.1 billion won, respectively, while foreigners bought a net 182.2 billion won.
Among Kosdaq market heavyweights, Samchundang Pharm plunged 16.02%, Alteogen fell 2.21% and ABL Bio slipped 0.39%. Rino Industrial rose 3.98%, LigaChem Biosciences gained 2.47%, Peptron added 2.21%, HLB climbed 2.15%, EcoPro advanced 1.26%, EcoPro BM rose 0.8% and Rainbow Robotics edged up 0.55%.
In Seoul's foreign-exchange market, the won-dollar exchange rate closed at 1,504.2 won, down 2.1 won from the previous session.
Ko Jung-sam, Hankyung.com reporter jsk@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
