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[Photo News] Samsung Galaxy S25+ powers Van Gogh Museum
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Korea Herald
9 hours ago
- Korea Herald
Seoul shares open sharply higher on US gains
South Korean stocks opened sharply higher Tuesday, tracking overnight gains on Wall Street driven by hopes for rate cuts. The benchmark Korea Composite Stock Price Index rose 59.1 points, or 1.88 percent, to 3,206.85 in the first 15 minutes of trading. Overnight, US stocks gained ground on hopes the Federal Reserve may go for multiple rate cuts later this year to support the economy following a weaker-than-expected jobs report released over the weekend. The Dow Jones Industrial Average closed 1.34 percent higher, with the tech-heavy Nasdaq composite climbing 1.95 percent and the S&P 500 rising 1.47 percent. In Seoul, big-cap shares got off to a strong start as investors went bargain hunting following the KOSPI's steep drop last week. Market bellwether Samsung Electronics added 1.72 percent, while its chipmaking rival SK hynix gained 1.94 percent. Leading battery maker LG Energy Solution jumped 2.13 percent, and top automaker Hyundai Motor advanced 1.18 percent. Financial and shipbuilding shares were particularly bullish. KB Financial soared 3.69 percent, and Shinhan Financial spiked 3.19 percent. Major shipbuilder HD Hyundai Heavy surged 2.27 percent, and HD Korea Shipbuilding shot up 4.15 percent. The state-run Korea Electric Power also increased 2.28 percent. But Kakao, the operator of the country's dominant mobile messenger, slid 3.25 percent. The local currency was trading at 1,382.8 won against the greenback at 9:15 a.m., up 2.4 won from the previous session. (Yonhap)
Korea Herald
2 days ago
- Korea Herald
Foreign money returns to Kospi, piling into Samsung
Analysts forecast Kospi's rally to take pause in August amid market correction Foreign investors net purchased shares of over 6 trillion won ($4.3 billion) on the benchmark Kospi in July, driven largely by a massive 3.5 trillion won buying spree on the country's leading chipmaker, Samsung Electronics. Offshore investors bought a net 6.28 trillion won worth of local stocks on the main bourse Kospi in July, according to the data from the bourse operator Korea Exchange. It was the largest amount since the 7.86 trillion won net buying in February 2024. Since turning to a net buying stance in May, foreign investors have been scooping up shares on the Kospi for three consecutive months. Samsung Electronics was the top pick, drawing 3.5 trillion won in net foreign purchases, accounting for 56 percent of the monthly total. Giving further buying momentum was news that the company would manufacture AI chips for Tesla under a multiyear $16.5 billion deal, stoking hopes of a rebound in its loss-making foundry business. Hanwha Ocean followed, buoyed by expectations surrounding the Korea-US trade deal, with offshore investors net purchasing shares worth 858 billion won. The shipbuilder under the defense-to-energy conglomerate Hanwha Group is expected to anchor the Korea-US shipbuilding initiative 'Make American Shipbuilding Great Again.' Shares of SK Square (457 billion won), Isu Petasys (329 billion won) and Hanwha Aerospace (249 billion won) trailed behind as the next most purchased stocks. Marking a contrast with the buying rally for Samsung Electronics, offshore investors offloaded 193.1 billion won worth of SK hynix shares last month, following a bearish forecast from global banking giant Goldman Sachs. Naver was the most sold stock by foreigners during the period, as they dumped 668.2 billion won worth of shares last month. Major net sold stocks included Doosan Enerbility (243.8 billion won), Samsung SDI (206.8 billion won), Kakao Pay (184.5 billion won) and KB Financial Group (159.8 billion won). Meanwhile, the Kospi sank to 3,119.41 on Friday, down 3.88 percent from the previous session, marking its sharpest single-day drop in two months. The stock market was dampened by the government's tax code revision plan and the uncertainty associated with the US tariff talks. On the day, foreign investors offloaded shares worth 656 billion won on the Kospi. 'Investor sentiment weakened as expectations for US rate cuts receded. Foreign investors posted net selling of around 1 trillion won in both the spot and futures markets amid a stronger dollar,' analyst Park Ki-hoon from Korea Investment & Securities explained. 'The market experienced a sharp correction as a series of expectations quickly unraveled amid heightened macro uncertainty both at home and abroad,' said Lee Kyung-min of Daishin Securities. Despite the Kospi's bullish run in recent months, analysts anticipate a period of elevated volatility in August as the index steps into a phase of valuation correction. 'The conclusion of the Korea-US tariff negotiations, diminished expectations for US rate cuts, and lowered hopes for tax reform are factors weighing on the stock market," said Na Jeong-hwan, an analyst at NH Investment & Securities, projecting the Kospi to trade between 3,000 and 3,300 points this week. 'With a lack of earnings momentum in the domestic market, a short-term correction appears necessary. Volatility is expected to increase in August,' said Kyobo Securities analyst Kim Joon-woo, suggesting the Kospi could inch down to as low as 2,900 points this month.
Korea Herald
5 days ago
- Korea Herald
After tariff deal reprieve, Samsung braces for new trade rules
Chip earnings slump to 6-quarter low, but recovery expected on AI, Tesla orders Samsung Electronics said Thursday it is closely monitoring the upcoming decision by the US Department of Commerce regarding semiconductor-related trade regulations, despite an easing in uncertainty following tariff negotiations between South Korea and the US on the same day. During a conference call following its second-quarter earnings announcement, the tech giant said the decision expected in mid-August pertains to the Section 232 investigation under the US Trade Expansion Act, which covers semiconductor and finished products, including smartphones, tablets, PCs and monitors. 'We are keeping a close watch on the outcome of the Section 232 investigation, as it may have implications beyond chips,' a Samsung Electronics official said. 'We have been actively presenting our views throughout the investigation process and have maintained close communication with relevant authorities in both countries.' Samsung said it is preparing a multi-layered response strategy to minimize business risks and seize potential opportunities, depending on the outcome of bilateral discussions between Seoul and Washington. Meanwhile, Samsung highlighted a recent $16.5 billion order secured from Tesla as a 'milestone' that demonstrates the competitiveness of the company's advanced process technologies. It said the deal is expected to pave the way for additional orders from other major clients, contributing to stable operations at its US-based Taylor plant. Samsung has been pushing ahead with the construction of a new chip fabrication plant in Taylor, Texas, with the goal of fulfilling high-value chip contracts from diverse US clients. The plant is slated to begin full-scale operations next year. For 2025, the company said investment in the Taylor facility will remain within this year's capex range but will increase next year. The company also announced that it has completed approval for transitioning its 1c DRAM using a 10-nanometer process to pilot mass production. Based on this, it has finalized the development of its sixth-generation HBM chips, known as HBM4, and has begun shipping samples to major clients. 'Our HBM4 applies advanced logic processes to the base die and features an optimized design, resulting in improvements in performance and energy efficiency compared to the previous generation, HBM3E,' a Samsung Electronics official said. 'We plan to ramp up timely supply in line with the full-scale demand for HBM4 expected next year.' Earlier in the day, Samsung announced its preliminary earnings for the second quarter, reporting an operating profit of 4.68 trillion won ($3.36 billion), down 55.2 percent from a year earlier. Net income fell 48 percent to 5.12 trillion won, while sales rose slightly by 0.67 percent to 74.6 trillion won. These figures fell short of market expectations. According to financial data provider FnGuide, consensus estimates had forecast 6.18 trillion won in operating profit and 76.2 trillion won in sales. Samsung's Device Solutions division, which oversees the semiconductor business, posted 27.9 trillion won in sales and 400 billion won in operating profit — its lowest since a 2 trillion won loss in the fourth quarter in 2023. Despite growth in high-value memory and foundry sales, profitability was impacted by inventory-related charges and US sanctions affecting the non-memory business. The Device eXperience division, which handles mobile and consumer electronics, recorded 43.6 trillion won in revenue and 3.3 trillion won in operating profit. The decline was attributed to reduced Galaxy S25 smartphone sales and intensified competition in the TV market, resulting in a 16 percent drop in revenue and a 1.4 trillion won fall in profit compared to a year ago. Looking ahead, Samsung forecasts a gradual rebound in the third quarter as one-off costs subside, although lingering tariff uncertainties and global economic slowdowns may pose challenges. 'While global trade uncertainties and geopolitical risks raise concerns about slower growth, we expect momentum in the artificial intelligence and robotics industries to gradually drive recovery in the IT sector,' a Samsung Electronics official said.
