Seoul stocks slip slightly on tech losses, Iran uncertainty
Korean shares edged lower as chipmakers declined and investors stayed wary of renewed U.S.-Iran tensions and higher oil prices.
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An employee stands before an electronic display board at Hana Bank's trading room in Jung District, central Seoul, on June 29.YONHAP
Korean stocks slid on Monday as investors remained cautious amid renewed concerns over the fragile U.S.-Iran cease-fire and rising oil prices, with tech shares leading losses. The Korean won weakened against the U.S. dollar.
The benchmark Kospi lost 16.56 points, or 0.2 percent, to close at 8,394.65, after rising as high as 8,525.53.
Oil prices climbed after the United States and Iran exchanged fresh strikes over the weekend, raising renewed concerns over energy supplies and shipping traffic through the Strait of Hormuz.
The two sides agreed to halt recent hostilities in the Gulf and renew talks, according to reports.
On Friday, the S&P 500 slipped 0.05 percent and the Nasdaq composite declined 0.24 percent, while the Dow Jones Industrial Average fell 0.09 percent.
Tech shares briefly pared earlier losses in late afternoon following mega investment plans by the two chip giants — Samsung Electronics and SK hynix — to expand memory chip production capacity, but failed to sustain the momentum and ended the session in negative territory.
Trade volume was moderate at 368.17 million shares worth 42.26 trillion won ($27.35 billion), with gainers sharply outnumbering losers 818 to 87.
The logos of Samsung Electronics, left, and SK hynixYONHAP
Institutions and individuals bought a net 2.93 trillion won and 4.59 trillion won worth of shares, respectively, while foreigners sold off a net 7.73 trillion won.
"The agreement between the United States and Iran to halt hostilities in the Strait of Hormuz and resume talks helped ease near-term geopolitical risks, but lingering uncertainty continues to weigh on investor sentiment," Lee Kyoung-min, an analyst at Daishin Securities, said. "The government's announcement of mega projects to expand AI infrastructure is positive for the semiconductor industry over the longer term. However, it provided only limited support for chip stocks, which remain under pressure amid recent concerns over semiconductor prices."
Tech shares were in negative territory.
Market bellwether Samsung Electronics fell 4.86 percent to 323,000 won, and chip giant SK hynix shed 1.68 percent to 2.62 million won. SK Square, the parent of SK hynix, lost 4.65 percent to 1.64 million won.
LG Energy Solution's battery factory in Wrocław, Poland, is seen on Dec. 8, 2023.LG ENERGY SOLUTION
Battery shares closed higher.
LG Energy Solution jumped 20.81 percent to 400,500 won, and its smaller rival Samsung SDI advanced 12.53 percent to 512,000 won.
The Korean won weakened by 12.5 won from the previous session, trading at 1,544.45 won against the greenback as of 3:30 p.m.
