Summary
- The Kospi fell more than 1%% early in the session on news of a renewed blockade of the Strait of Hormuz.
- At that time, foreign investors were net sellers of 214.2 billion won, while retail and institutional investors were net buyers.
- Shipping stock Heung-A Shipping and aluminum-related stock Sam-A Aluminium surged, while the won-dollar exchange rate opened higher at 1,480.6 won.
Forecast Trend Report by Period
Won Opens Lower Against Dollar as Foreigners Sell
South Korea’s Kospi fell more than 1% in early trading as investors turned cautious on reports that the Strait of Hormuz had been blocked again.
As of 9:01 a.m. on July 9, the Kospi was down 1.01% from the previous session at 5,812.84.
The drop came despite a two-week ceasefire agreement between the U.S. and Iran. Sentiment weakened after Iran threatened to reimpose a blockade of the Strait of Hormuz, citing Israeli airstrikes in Lebanon.
Iran’s semi-official Fars News Agency and state-run Press TV reported on July 8 that tanker traffic through the Strait of Hormuz had been halted again because of Israel’s continued strikes on Lebanon.
Fars said the ceasefire went beyond a bilateral agreement with the U.S. and meant a halt to “all hostilities in the region.” It added that Lebanon was clearly included in the scope of the ceasefire.
Earlier, Israeli Prime Minister Benjamin Netanyahu said Israel’s military operations in Lebanon targeting Hezbollah were not included in the U.S.-Iran ceasefire terms, and struck more than 100 locations including Beirut and southern Lebanon.
On the main bourse, foreign investors were net sellers of 214.2 billion won at that time. Retail and institutional investors were net buyers of 106.8 billion won and 95.8 billion won, respectively.
Among the Kospi’s largest companies, Samsung Electronics, SK Hynix, LG Energy Solution, SK Square and Hanwha Aerospace fell, while Hyundai Motor, Samsung Biologics and KB Financial Group rose.
Shipping and aluminum-related stocks jumped after the report of the renewed Hormuz blockade. Heung-A Shipping surged 14.38% and Sam-A Aluminium climbed 6.64%. APR rose more than 12% on expectations of strong earnings from brokerages.
The Kosdaq traded near flat. As of that time, the junior index was down 0.03% at 1,089.57. Samchundang Pharm, which rebounded in after-hours trading the previous day, rose more than 8% early in the session.
The won-dollar exchange rate opened higher. In Seoul trading, the won opened at 1,480.6 per dollar, up 10 won from the previous session.
Noh Jung-dong, Hankyung.com reporter dong2@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.
