South Korean equities extended their advance for a second straight session, with Samsung Electronics doing much of the heavy lifting even as SK Hynix and LG Energy Solution moved lower, pointing to stock specific rather than broad based sector strength. Foreign investors turning net buyers alongside a stronger won suggests some renewed appetite for Korean assets despite caution linked to the ongoing Middle East conflict, though the scale of net buying was modest. The sharp jump in early month exports adds a positive underlying data point for the broader growth picture, while the finance minister’s comments on leveraged ETF measures and readiness to act on volatility signal authorities remain attentive to speculative excess even as the market rallies.
Note, Japanese markets are closed for a holiday today.
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Samsung is carrying the Kospi higher on its own for a second day, even as the rest of the chip and battery complex pulls in the opposite direction.
Summary:
- The Kospi rose around 0.6% to roughly 6,339 points, following a similar sized gain of circa 0.65% on Monday.
- South Korea’s exports rose circa 45% in the first 10 days of August compared with a year earlier.
- Finance Minister Koo Yun-cheol said trading in single stock leveraged ETFs has fallen since supplementary government measures were introduced, and said authorities would take all possible policy steps to reduce market volatility.
- Samsung Electronics rose circa 3.6%, while SK Hynix fell circa 0.4% and LG Energy Solution slid circa 1.5%.
- Of 908 traded issues, 512 advanced and 348 declined.
- Foreigners were net buyers of shares worth around 148 billion won, or roughly $104 million.
- The won strengthened to around 1,416 per dollar, up circa 0.2% from its previous close.
South Korean shares rose for a second consecutive session on Tuesday, driven largely by a sharp gain in chipmaker Samsung Electronics, even as broader market sentiment remained cautious amid the ongoing conflict in the Middle East.
The benchmark Kospi index climbed around 0.6% to trade near 6,339 points, building on a similar sized advance of circa 0.65% recorded on Monday. The gains came despite a mixed performance among the market’s other heavyweight names, underscoring that Samsung’s strength was doing much of the work behind the index level move.
Samsung Electronics rose circa 3.6%, while fellow chipmaker SK Hynix slipped circa 0.4% and battery maker LG Energy Solution fell circa 1.5%, highlighting a divergence within the technology and battery complex rather than a broad based rally. Across the wider market, advancers outnumbered decliners, with 512 of 908 traded issues higher against 348 lower.
Foreign investors were net buyers of Korean shares, adding a modest amount worth around 148 billion won, or roughly $104 million, on the day. The Korean won strengthened alongside the equity gains, quoted at around 1,416 per dollar on the onshore settlement platform, up circa 0.2% from its previous close.
Separately, trade data released Tuesday showed South Korea’s exports rose circa 45% in the first ten days of August compared with the same period a year earlier, a strong start to the month for the export dependent economy. Finance Minister Koo Yun-cheol also addressed recent volatility in single stock leveraged exchange traded funds, saying trading activity in that segment has declined since the government introduced supplementary measures. He added that authorities remain prepared to take all possible policy steps to reduce market volatility going forward, a signal that officials continue to monitor speculative trading closely even as the broader market extends its gains.
This article was written by Eamonn Sheridan at investinglive.com.
