Latest news with #Kospi
The Star
11 hours ago
- Business
- The Star
FBM KLCI remains negative amid investor jitters
KUALA LUMPUR: The profit-taking on Bursa Malaysia continued on Wednesday, with investors cashing out ahead of the Aug 1 US tariffs deadline and the Federal Reserve rate decision later tonight. At 12.30pm, the benchmark FBM KLCI was down 5.21 points to 1,518.61 with the decline led by heavyweight banks. Among the leading laggards, CIMB slid nine sen to RM6.55, Maybank dropped six sen to RM9.46 and RHB lost three sen to RM6.18. Tenga Nasional retreated eight sen to RM13.24, while YTL Power shed five sen to RM4.07 and YTL Corp dropped four sen to RM2.44. There was also a broad decline among the lower liners with the number of negative issues outnumbering positive at a ratio of more than 2-to-1. Volume was 1.55 billion shares changing hands for RM939.65mil. Of actives, NexG was flat at 53 sen, Pharmaniaga dropped two sen to 16 sen and SFP Tech slid 2.5 sen to 16 sen. Asian markets are in a cautious mood as investors brace for a raft of big tech earnings scheduled for release on Wall Street, as well as the latest guidance from the Fed and econonomic reports on the health of the US economy. Following the previous day's weakness, there was mild upward retracement in major markets. China's composite index was up 0.52% to 3,628 while Hong Kong's Hang Seng fell 0.43% to 25,415. Japan's NIkkei was flat at 40,678 and South Korea's Kospi jumped 1.14% to 3,267.
Yahoo
11 hours ago
- Business
- Yahoo
Samsung's Big Tesla Order Fuels Recovery Bets Despite Chip Woes
(Bloomberg) — Samsung Electronics Co.'s ( surprise $16.5 billion chipmaking deal with Tesla Inc (TSLA). has breathed new life into a foundry business all but written off by many investors. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Boston's Dumpsters Overflow as Trash-Strike Summer Drags On Its stock has risen 9% since news about the agreement on Monday, bringing Samsung's gains in July to over 20% and putting the stock on track for its best month in more than four years. Samsung accounted for more than half of July's gains in Korea's stock benchmark Kospi, underscoring growing investor enthusiasm. The Tesla deal is significant as it marks a shift for the ailing foundry business — from relying on captive internal orders to deeper external engagements, Citigroup analysts said in a report. A successful implementation would boost Samsung's prospects for generating more external clients and validate its investment in a US plant. 'I think market basically paid not even zero value — negative value — on foundry business so far, and suddenly market checked and said 'Okay! they still can do',' said Young Jae Lee, senior investment manager at Pictet Asset Management Ltd., who has Samsung as the biggest position in his $831 million fund. Once considered a serious challenger to Taiwan Semiconductor Manufacturing Co., Samsung has steadily ceded ground in the global chip race. The company, which supplies its own memory chips and produces semiconductors for clients, has struggled to fill its foundry capacity as major customers such as Apple Inc. exited and its high-bandwidth memory (HBM) business has gone woefully off track. The order announcement comes more than a year after Samsung replaced the head of its semiconductor business with seasoned memory expert Jun Young-hyun in a bid to restore the company's technological edge. Under Jun's leadership, Samsung replaced the head of the foundry business with Han Jin-man, a highly regarded executive at its chip division in the US and recruited Margaret Han, a former Intel Corp. and TSMC executive, to lead Samsung's US foundry business. The deal also secures long-term utilization of its facility in Taylor, Texas, which has suffered from construction delays. Samsung is expanding production there with support from the 2022 Chips and Science Act, Washington's effort to rebuild the American semiconductor industry with billions in subsidies and tax incentives for the likes of Intel. Morgan Stanley analysts Shawn Kim and Michelle Kim estimate the partnership with Tesla could add more than $50 billion to Samsung's market value. 'Tesla's AI6 chip announcement validates Samsung's advanced nodes at its US fab, an endorsement that stands out amid Intel's well publicized struggles with domestic manufacturing,' said Gary Tan, portfolio manager at Allspring Global Investments in Singapore. There's still caution about calling the Tesla tie-up the start of a meaningful turnaround, but it gives ground for greater optimism around South Korea's largest company. 'Samsung now has the narrative tailwinds and the cash flow support to justify more constructive positioning, but it still needs to prove execution in AI chips beyond just this Tesla headline,' said Haris Khurshid, chief investment officer at Karobaar Capital, a Chicago-based firm. 'I'd expect some consolidation until earnings prove that this is more than just a headline trade.' Some analysts say the company's other problems are likely to remain. For the first time in April, homegrown rival SK Hynix Inc. overtook Samsung as the world's biggest producer of DRAM chips. Samsung has also struggled to secure approval from Nvidia Corp. for its latest HBM offerings. But Tan said Nvidia's latest line of AI chips 'presents Samsung with an opportunity to regain momentum in advanced memory.' Despite the slow pace of development, JPMorgan Chase & Co. in a July 8 note said it has noticed growing interest from investors on 'Samsung's comeback in the high-bandwidth memory market.' The company is expected to give more details on the Tesla deal and the outlook for the second half of the year on Thursday when it reports its full second-quarter earnings. It said earlier this month its preliminary operating profit fell by a sharper-than-expected 56% on inventory writedowns that followed the US curbs on Chinese-bound AI chips. Investors will also be keen to get details on whether Samsung would be able to benefit from Nvidia's resumption of sales of its H20 AI chips to China. The Korean memory maker has provided HBM3 to pair with H20 chips in the past. The stock is in a better position than last year, when company management issued a rare public apology for disappointing results. But despite the fanfare, analysts warn the rally may be overextended in the short term. Technical indicators show Samsung shares are trading at overheated levels, and consensus targets imply the smallest 12-month upside in more than four years. —With assistance from Yoolim Lee and Vlad Savov. Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Elon Musk's Empire Is Creaking Under the Strain of Elon Musk ©2025 Bloomberg L.P.
Business Times
12 hours ago
- Business
- Business Times
Samsung's big Tesla order fuels recovery bets despite chip woes
[HONG KONG] Samsung Electronics' surprise US$16.5 billion chipmaking deal with Tesla has breathed new life into a foundry business all but written off by many investors. Its stock has risen 9 per cent since news about the agreement on Monday (Jul 28), bringing Samsung's gains in July to over 20 per cent and putting the stock on track for its best month in more than four years. Samsung accounted for more than half of July's gains in Korea's stock benchmark Kospi, underscoring growing investor enthusiasm. The Tesla deal is significant as it marks a shift for the ailing foundry business, from relying on captive internal orders to deeper external engagements, Citigroup analysts said in a report. A successful implementation would boost Samsung's prospects for generating more external clients and validate its investment in a US plant. 'I think the market basically paid not even zero value, negative value, on the foundry business so far, and suddenly the market checked and said: 'Okay! they still can do',' said Young Jae Lee, senior investment manager at Pictet Asset Management, who has Samsung as the biggest position in his US$831 million fund. Once considered a serious challenger to Taiwan Semiconductor Manufacturing Company (TSMC), Samsung has steadily ceded ground in the global chip race. The company, which supplies its own memory chips and produces semiconductors for clients, has struggled to fill its foundry capacity as major customers such as Apple exited and its high-bandwidth memory (HBM) business has gone woefully off track. The order announcement comes more than a year after Samsung replaced the head of its semiconductor business with seasoned memory expert Jun Young-hyun in a bid to restore the company's technological edge. Under Jun's leadership, Samsung replaced the head of the foundry business with Han Jin-man, a highly regarded executive at its chip division in the US and recruited Margaret Han, a former Intel and TSMC executive, to lead Samsung's US foundry business. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The deal also secures long-term utilisation of its facility in Taylor, Texas, which has suffered from construction delays. Samsung is expanding production there with support from the 2022 Chips and Science Act, Washington's effort to rebuild the American semiconductor industry with billions in subsidies and tax incentives for the likes of Intel. Morgan Stanley analysts Shawn Kim and Michelle Kim estimate the partnership with Tesla could add more than US$50 billion to Samsung's market value. 'Tesla's AI6 chip announcement validates Samsung's advanced nodes at its US fab, an endorsement that stands out amid Intel's well publicised struggles with domestic manufacturing,' said Gary Tan, portfolio manager at Allspring Global Investments in Singapore. There's still caution about calling the Tesla tie-up the start of a meaningful turnaround, but it gives ground for greater optimism around South Korea's largest company. 'Samsung now has the narrative tailwinds and the cash flow support to justify more constructive positioning, but it still needs to prove execution in artificial intelligence (AI) chips beyond just this Tesla headline,' said Haris Khurshid, chief investment officer at Karobaar Capital, a Chicago-based firm. 'I'd expect some consolidation until earnings prove that this is more than just a headline trade.' Some analysts say the company's other problems are likely to remain. For the first time in April, homegrown rival SK Hynix overtook Samsung as the world's biggest producer of Dram chips. Samsung has also struggled to secure approval from Nvidia for its latest HBM offerings. But Tan said Nvidia's latest line of AI chips 'presents Samsung with an opportunity to regain momentum in advanced memory'. Despite the slow pace of development, JPMorgan Chase in a Jul 8 note, said that it has noticed growing interest from investors on 'Samsung's comeback in the high-bandwidth memory market'. The company is expected to give more details on the Tesla deal and the outlook for the second half of the year on Thursday when it reports its full second-quarter earnings. It said earlier this month its preliminary operating profit fell by a sharper-than-expected 56 per cent on inventory writedowns that followed the US curbs on Chinese-bound AI chips. Investors will also be keen to get details on whether Samsung would be able to benefit from Nvidia's resumption of sales of its H20 AI chips to China. The Korean memory maker has provided HBM3 to pair with H20 chips in the past. The stock is in a better position than last year, when company management issued a rare public apology for disappointing results. But despite the fanfare, analysts warn the rally may be overextended in the short term. Technical indicators show Samsung shares are trading at overheated levels, and consensus targets imply the smallest 12-month upside in more than four years. BLOOMBERG
Mint
12 hours ago
- Business
- Mint
Rupee slide, steep valuations drive FPIs to pull ₹32,311 crore from Indian stocks
A weakening rupee and high stock valuations, compared to other emerging markets have prompted foreign portfolio investors (FPIs) to pull out over ₹32,000 crore from Indian equities in July — a sharp reversal from their buying trend last month. The rupee dropped 1.6% over the past month — from 85.49 on 27 June to 86.82 against the US dollar on Tuesday — its lowest level in five months. Due to the rupee's fall, the BSE Dollex 30 (the dollar-linked version of Sensex) fell 4.8% from 8071.26 to 7686.39 in a month. In contrast, the Sensex itself fell only 3.2%, from 84,059 to 81,338, showing how currency losses magnified the hit for overseas investors. Also read: FPIs struggle to shake off fears, bearish bets hit 4-month high This erosion in dollar returns has led FPIs to offload shares worth ₹32,311 crore from the cash market this month, according to data from NSDL and BSE. That's a sharp contrast from June, when FPIs bought equities worth ₹8,467 crore as the rupee remained relatively stable, averaging 85.93 per dollar. Currency experts believe the rupee's weakness could persist, given the unit's historical tendency to depreciate by 3–4% annually. Ongoing global tariff concerns and a stronger dollar are adding pressure. So far this year, the rupee has depreciated 1.36% through 29 July, suggesting room for a further 2–3% fall. Valuation gap Another reason for the selloff is India's rich market valuation. The Sensex trades at a price-to-earnings (P/E) multiple of 22.63x, compared with South Korea's Kospi at 14.10x and Hong Kong's Hang Seng at 11.81x. These valuation gaps are especially glaring given that the Kospi ended at a four-year high of 3,230.57 and the Hang Seng flirted with a similar high at 25,524.45 on Tuesday, even as Indian markets have been correcting since late June. Also read: FPI jitters: Are foreign investors losing confidence in Indian markets? 'Indian exports can be affected in the short term if a deal with the US isn't signed before the 1 August deadline, which adds to the negative sentiment on the rupee amid a period of general dollar strength," said Sujan Hajra, executive director and chief economist at Anand Rathi Financial Services. Hajra added that while low oil prices and growing services exports support the rupee on the current account side, there are headwinds on the capital account. These include FPI outflows, foreign direct investment (FDI) repatriation, and a slowdown in external commercial borrowings due to higher global interest rates. Anindya Banerjee, head of research (currency, commodities, and interest rates) at Kotak Securities, said that the rupee could trade in an 86–87.5 range to the dollar next month, with a bias to the downside especially if a trade deal with the US is not signed. The dollar index, which tracks the greenback against a basket of six currencies including the euro, pound, yen, and Swiss franc, has risen 1.9% since 23 July, hitting an intraday level of 99.08 on Tuesday due to the ongoing tariff tensions. Also read: Sensex crashes over 2,100 points in 4 days; what is driving the Indian stock market down?
Bloomberg
14 hours ago
- Business
- Bloomberg
Samsung's Big Tesla Order Fuels Recovery Bets Despite Chip Woes
Samsung Electronics Co. 's surprise $16.5 billion chipmaking deal with Tesla Inc. has breathed new life into a foundry business all but written off by many investors. Its stock has risen 9% since news about the agreement on Monday, bringing Samsung's gains in July to over 20% and putting the stock on track for its best month in more than four years. Samsung accounted for more than half of July's gains in Korea's stock benchmark Kospi, underscoring growing investor enthusiasm.
