Seoul Shares End Higher on Tech Gains, Cautious Over Iran Deadline
SEOUL — South Korean stocks closed higher on Tuesday, buoyed by a surge in technology shares and Samsung Electronics' stellar earnings guidance, while investors kept a wary eye on an approaching U.S. deadline for a potential peace deal with Iran. The benchmark Korea Composite Stock Price Index (KOSPI) rose 44.45 points, or 0.82 percent, to finish at 5,494.78.
Trading volume was moderate at 979.32 million shares worth 23.11 trillion won (US$15.4 billion), with decliners outnumbering gainers 577 to 286.
The main index extended its gains after Samsung Electronics estimated its operating profit for the January-March quarter soared nearly ninefold to a record 57.2 trillion won, compared with 6.61 trillion won a year earlier, fueled by robust demand for artificial intelligence-related chips.
Foreign investors turned net buyers, purchasing a net 406.88 billion won worth of stocks, while institutional and retail investors sold a net 414.13 billion won and 342.63 billion won, respectively.
"Despite ongoing geopolitical uncertainties linked to tensions involving the United States, Israel and Iran, the Korean market was supported by overnight gains on Wall Street, particularly in semiconductor stocks, and by expectations of further upside following Samsung Electronics' strong first-quarter earnings," said Han Ji-young, an analyst at Kiwoom Securities.
Investor caution stemmed from renewed threats by U.S. President Donald Trump, who on Monday (U.S. time) broadened his warning against Iran to include potential strikes on infrastructure such as power plants and bridges. The deadline for a deal has been set for Wednesday at 9 a.m. Korea time, according to reports.
The Korean won strengthened against the U.S. dollar, trading at a lower rate than the previous session.
In Seoul, technology stocks led the gains. Market bellwether Samsung Electronics advanced 1.76 percent to 196,500 won, and its chipmaking rival SK hynix surged 3.39 percent to 916,000 won. Defense giant Hanwha Aerospace Industries jumped 6 percent to 1,537,000 won, and top carmaker Hyundai Motor rose 0.85 percent to 473,000 won.
Among decliners, leading battery maker LG Energy Solution fell 0.97 percent to 408,500 won.
The rally came after a positive session on Monday, when Seoul shares closed higher as investors awaited Samsung's earnings guidance. That day, the KOSPI added 73.03 points, or 1.36 percent, to 5,450.33, with foreigners selling a net 159.7 billion won and institutions buying a net 837.1 billion won. South Korean stocks had also been supported by expectations that Samsung's operating profit could surpass the 40 trillion-won mark for the first time.
"Investors' hopes over listed firms' performances are still valid," Lee Kyoung-min, a researcher at Daishin Securities, said on Monday, noting that expectations for Samsung Electronics' performance lifted the overall index. "Geopolitical concerns over the Middle East and expectations for earnings reports are mixed, leading to differentiation among sectors," he added.
On Monday, Poongsan, South Korea's leading producer of copper alloys, jumped 12.91 percent to 109,300 won on reports that Hanwha Aerospace is seeking to take over its ammunition business.
Bond prices, which move inversely to yields, closed lower on Tuesday, according to data.
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This article was compiled from wire reports and market data. All figures are as reported by Yonhap.