South Korean shares end lower as Samsung Electronics falls

SEOUL: Round-up of South Korean financial markets:

South Korean shares ended lower on Wednesday, as heavyweight Samsung Electronics fell on a Reuters report that its high-end chips were yet to fully pass Nvidia’s test for use, while broader market focus was on second-quarter earnings.

The benchmark KOSPI closed down 15.58 points, or 0.56%, at 2,758.71.

Chipmaker Samsung Electronics fell 2.26%, after Reuters reported that its fourth-generation high bandwidth memory or HBM3 chips had been cleared by Nvidia for use in its processors, but fifth-generation HBM3E chips were yet to meet the U.S. chipmaker’s standards.

Rival SK Hynix, which already supplies high-end chips to Nvidia, rose 1.71%.

“There will be major exporting companies’ second-quarter earnings in the domestic market tomorrow, from SK Hynix to LG Energy Solution and Kia,” said Lee Kyoung-min, an analyst at Daishin Securities.

South Korea’s consumer sentiment in July was the most optimistic in 27 months, with a brighter spending outlook due to easing inflation concerns, a survey showed.

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Among other index heavyweights, battery makers and automakers fell, but e-commerce and biopharmaceutical stocks rose.

Of the total 933 traded issues, 370 shares advanced, while 491 declined.

Foreigners were net sellers of shares worth 271.6 billion won ($196.24 million) on the main board.

The won was quoted at 1,383.8 per dollar on the onshore settlement platform, 0.17% higher than its previous close at 1,386.1.

In money and debt markets, September futures on three-year treasury bonds rose 0.11 point to 105.58.

The most liquid three-year Korean treasury bond yield fell by 3.5 basis points to 3.052%, while the benchmark 10-year yield fell by 3 basis points to 3.137%.