South Korean shares fall as Iran ceasefire doubts fuel risk-off mood

SEOUL: Round-up of South Korean financial markets:  

South Korean shares fell more than 1% on Thursday, as uncertainty surrounding the US-Iran ceasefire and renewed Middle East tensions triggered a broader risk-off move.

The benchmark KOSPI closed down 94.33 points, or 1.61%, at 5,778.01.

US President Donald Trump said on Wednesday that US military ships and aircraft would remain positioned around Iran, warning Washington would start “shooting” again unless Tehran fully complies with the ceasefire deal.

Meanwhile, Iran said it would be “unreasonable” to pursue talks with Washington after Israel pounded Lebanon with its heaviest strikes yet on Wednesday.

“Market’s cautious sentiment was triggered by a possibility of Iran closing the Strait of Hormuz and a rebound in oil prices,” said Lee Kyoung-min, an analyst at Daishin Securities. Among index heavyweights, chipmaker Samsung Electronics fell 3.09%, while peer SK Hynix lost 3.39%.

Battery maker LG Energy Solution climbed 3.69%.

Hyundai Motor and sister automaker Kia shed 3.64% and 5.46%, respectively. Steelmaker POSCO Holdings added 1.24%, while drugmaker Samsung BioLogics eased 1.13%.

Of the total 915 traded issues, 357 advanced and 511 declined.

Foreigners were net sellers of shares worth 873.4 billion won ($588.6 million).

The won was quoted at 1,482.5 per dollar on the onshore settlement platform, 0.22% below Wednesday’s close of 1,479.2.

In offshore trading, the won was quoted at 1,482.0 per dollar, down 0.2%, while in non-deliverable forward trading, its one-month contract was quoted at 1,481.2.

Year-to-date, the KOSPI has risen 37.11%, while the won has weakened 2.9% against the dollar.

In the money and debt markets, June futures on three-year treasury bonds lost 0.08 point to 104.35.

The most liquid three-year Korean treasury bond yield rose 1.9 basis points to 3.345%, while the benchmark 10-year yield gained 3.2 basis points to 3.666%. ‑Reuters