Seoul Stock Market Climbs as Investors Prioritize Earnings Over Geopolitical Tensions
Seoul stocks finished marginally higher on Monday, as investors shifted their focus to the highly anticipated upcoming earnings season despite renewed geopolitical tensions between the United States and Iran. The local South Korean won also strengthened against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced by 27.17 points, or 0.44 percent, closing at 6,219.09. The index had touched an intraday high of 6,278.36 earlier in the session.
Trade volume on the KOSPI was moderate, with 683.8 million shares exchanged, valued at 22.3 trillion won (approximately $15.1 billion USD). Losers slightly outnumbered winners, with 533 declining stocks against 320 advancing ones.
Institutional investors emerged as net buyers, acquiring 181.7 billion won worth of shares. Conversely, foreign investors and individual retail investors collectively offloaded a net 437.4 billion won.
Despite opening modestly higher, the KOSPI managed to maintain its positive momentum throughout the day. This resilience came even amid heightened uncertainties surrounding US-Iran peace talks, triggered by the US Navy’s seizure of an Iranian-flagged cargo ship in the Gulf of Oman.
“The market is demonstrating reduced sensitivity to risks emanating from the Middle East conflict, as similar geopolitical ‘noises’ have become recurrent during the ongoing peace negotiations,” commented Lee Kyoung-min, a prominent analyst from Daishin Securities.
The analyst further noted that investors are now consciously redirecting their attention from broader geopolitical tensions towards the critical corporate earnings season.
South Korea’s semiconductor powerhouse, SK hynix, is widely expected to announce its first-quarter earnings this week. This follows its industry rival, Samsung Electronics, which recently reported a record-breaking operating profit guidance earlier this month, setting a positive tone for the chip sector.
Within the Seoul market, large-cap shares experienced mixed performance. However, sectors like batteries and defense demonstrated notable strength among the winners.
Market bellwether Samsung Electronics saw a slight dip of 0.69 percent, closing at 214,500 won. In contrast, its chipmaking competitor, SK hynix, surged by 3.37 percent to reach 1,166,000 won.
Battery manufacturing giant LG Energy Solution recorded a gain of 2.63 percent, reaching 429,000 won. This upward movement was driven by positive market anticipation surrounding the company’s energy storage system (ESS) business segment.
Defense shares also posted strong gains, largely attributed to the persistent tensions in the Middle East. Hanwha Aerospace edged up 0.14 percent to 1,425,000 won, while LIG Defense & Aerospace saw a significant climb of 5.14 percent, closing at 921,000 won.
Conversely, some prominent companies experienced declines. Major financial conglomerate KB Financial fell by 0.86 percent to 160,900 won, and biopharmaceutical firm Celltrion slipped 0.96 percent, closing at 205,500 won.
