Latest news with #KospiIndex
Business Times
4 days ago
- Business
- Business Times
Singapore stocks rise for third straight day amid mixed regional showing; STI up 0.5%
[SINGAPORE] Local stocks closed higher on Wednesday (Aug 6), marking a third consecutive day of gains despite a mixed regional market performance and Wall Street's decline the previous day. The US market dip followed weak services data that compounded concerns over last week's soft jobs report. The benchmark Straits Times Index (STI) rose 0.5 per cent or 19.12 points to end at 4,227.70. Across the broader market, gainers beat losers 309 to 217, with 1.5 billion securities worth S$1.4 billion having changed hands. On the index, was the top gainer. It rose 2.3 per cent or S$0.06 to S$2.63. Sembcorp came in at the bottom of the table, shedding 1.3 per cent or S$0.1 to S$7.70. The trio of local banks ended the day in the black. DBS rose 1.3 per cent or S$0.61 to S$48.85; OCBC was up 0.4 per cent or S$0.06 at S$17.04, and UOB edged up 0.2 per cent or S$0.08 to S$36.45. Regional markets ended mixed on Wednesday, with South Korea's Kospi Index and Hong Kong's Hang Seng Index both flat. Japan's Nikkei 225 Index rose 0.6 per cent, while Malaysia's Bursa Malaysia Kuala Lumpur Composite Index advanced 0.2 per cent. 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 This showing reflected underlying caution across the broader market amid ongoing tariff-related uncertainties. José Torres, senior economist at Interactive Brokers, noted that tension resulting from the tariffs imposed by US President Donald Trump on semiconductors, pharmaceutical equipment and on Moscow and New Delhi specifically, is 'generating some hesitation in markets during this weak seasonal period'. He also pointed to softer US economic data, with the non-manufacturing Purchasing Managers' Index (PMI) of the Institute for Supply Management (ISM) slipping to 50.1 in July, from 50.8 in June. While a reading above 50 still indicates expansion in the services sector – which makes up over two-thirds of the US economy – it signalled a lighter demand environment amid firm price pressures, said Torres. He added that US Treasuries are seeing losses in 'bear-flattening fashion', led by the short-end as heavier inflation expectations quell Federal Reserve rate-cut expectations and drive the yield curve north. Torres expects equities across most sectors to face selling pressure, fixed-income instruments along the maturity structure to deal with higher borrowing costs, and cyclical commodities, except for natural gas, to trade lower. On the other hand, volatility protection instruments and the greenback are catching bids, while gold and silver are attracting buying interest because of their defensive characteristics.
Korea Herald
13-07-2025
- Business
- Korea Herald
Kospi could soar 50% in 2 years: JPMorgan
Bullish calls from local, global analysts cite policy alignment, surging liquidity, strong investor sentiment Once deemed wishful thinking, an ambitious target for 5,000 points for South Korea's benchmark Kospi is now firmly on the radar, with JPMorgan Chase & Co. forecasting the index could climb over 50 percent from current levels within just two years — if the government follows through on its pledge to accelerate corporate governance reforms. The bullish forecast was reported by Bloomberg on Saturday, citing a note from JPMorgan strategists. 'Korea remains a key overweight market in Asia and among emerging markets,' the strategists wrote, as cited by Bloomberg. 'The Kospi Index, which has gained 32 percent so far this year and is approaching a record high, could reach around 5,000.' JPMorgan upgraded Korean equities to 'overweight' from 'neutral' earlier this week, pointing to President Lee Jae Myung's efforts to narrow the "Korea Discount" — the persistent valuation gap with peers like Japan and Taiwan — and deliver what the bank called 'the next phase of governance reforms' during his five-year term. In pledging to lift the Kospi to 5,000 points, Lee has promised measures aimed at improving shareholder returns, raising transparency and strengthening corporate accountability. The target represents a 57 percent gain from Friday's close of 3,176. 'We continue to recommend adding on any volatility as long as the reform process remains on track,' the strategists said. 'Any volatility in global or regional equities over the summer on tariff concerns, growth slowdown, bond market volatility could thus quickly invite buying.' Investor enthusiasm over Lee's agenda is already rippling through markets. The Kospi has surged 18 percent from below 2,700 points ahead of his June 3 election, repeatedly testing near-four-year highs over the past month. With a six-month gain of 32 percent, it ranks among the world's top-performing indexes and leads Asia in 2025. On Friday, the country's benchmark index climbed to an intraday high of 3,216.7 points — breaking above the 3,200 level for the first time in 46 months, since September 2021. A day earlier, the rally had pushed its total market capitalization to a record 3,000 trillion won ($2.2 trillion). JPMorgan projected Kospi could surpass its all-time high this year, projecting a trading range of 3,200 to 3,500. The previous peak was an intraday high of 3,316 on June 25, 2021. Other market watchers echoed the upbeat view, pointing to policy momentum and a broader market rerating as key drivers of continued gains. 'The recent alignment of policy moves — a rate cut by the central bank, the supplementary budget and pro-market measures — has fueled Korean equities more strongly than ever,' said Byun Jun-ho, a strategist at IBK Securities. 'We expect this trend to continue into the second half.' Ample liquidity is also underpinning the rally. 'About 65 trillion won in retail investor deposits remains on hold, while foreign buying continues and inflows into domestic equity funds are rising sharply,' said Na Jung-hwan of NH Investment & Securities. 'We anticipate this liquidity will keep flowing into sectors and stocks benefiting from policy-driven momentum.' JPMorgan added that foreign investment — typically a key driver of the Kospi — has been relatively subdued in the first half this year compared to 2024, leaving room for further inflows. 'Given the interest we receive from global investors, we believe investors are looking for better entry points,' the strategists said. External risks, but bulls unshaken Some analysts flagged external risks, including tariff uncertainty and US inflation data. 'The upcoming US June Consumer Price Index is worth watching, as it could reflect the inflationary impact of Trump's tariff measures,' said Kang Jin-hyuk of Shinhan Securities. Na added, 'If inflation indicators come in high in the third quarter due to tariffs, it could delay the US Federal Reserve's rate-cut timeline — an emerging risk worth monitoring." Still, some see any pullback as a buying opportunity. 'Even as Kospi earnings forecasts are being revised downward, the index is outperforming global peers on the back of a broader market rerating, rather than earnings strength,' said Shin Seung-jin of Samsung Securities. 'If a tariff deal sparks rotation into previously lagging sectors, the Kospi could break past its 2021 peak and move to a new level.'
Mint
03-07-2025
- Business
- Mint
Korea's Reform Drive Gets a Boost as Lawmakers Vote for Changes
South Korea's ambitious plan to improve corporate governance standards got a boost after the parliament voted to approve changes that will help protect the rights of minority shareholders. The revisions to the so-called commercial code include making board members legally accountable to all shareholders, instead of catering largely only to those with significant stakes — such as the founding families of the nation's many conglomerates. Another key change is to limit the voting rights of the largest shareholders and related parties to 3% when appointing the members of an audit committee. South Korean authorities have been seeking to replicate the success seen in Japan, where a push for corporate reforms helped lift stock valuations and spur a world-beating equity rally. Korea unveiled a so-called 'Corporate Value-up Program' in early 2024 with a view to incentivize firms to prioritize shareholder returns. The resolve though has intensified in recent months as newly elected President Lee Jae-myung made lifting governance standards and improving stock-market returns one of his top priorities. Expectations that South Korea is embracing a more shareholder-friendly culture have been a major driver behind this year's surge in the nation's stocks, which has propelled the market's value to over $2 trillion. The benchmark Kospi Index has surged almost 30% in 2025 to be one of the world's best-performing gauges. It largely held its 1.2% gain on Thursday following the outcome of the vote. 'This amendment to the Commercial Act sends a positive signal, as it demonstrates the strong commitment of the government and the National Assembly to corporate governance reform,' said Seokkeun Ha, chief investment officer at Eugene Asset Management in Seoul. 'In the short term, it could provide supportive momentum for the Kospi, backed by expectations of foreign capital inflows. With assistance from Shinhye Kang. This article was generated from an automated news agency feed without modifications to text.
Business Recorder
02-07-2025
- Business
- Business Recorder
PSX soars: KSE-100 crosses 130,000 barrier
The record-breaking rally at the Pakistan Stock Exchange (PSX) continued on Wednesday, as the benchmark KSE-100 Index crossed the coveted 130,000 mark, gaining over 1,100 points during intra-day trading. At 12:40pm, the benchmark index was hovering at 130,000.17 level, an increase of 1,800.75 points or 1.40%. Across the board buying was observed in key sectors including automobile assemblers, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks including PRL, HUBCO, PSO, MARI, OGDC, PPL and POL traded in the green. Experts noted that improved economic indicators, including a lowering inflation rate, are contributing to the bullish run. On Tuesday, PSX sustained its bullish momentum, with the benchmark KSE-100 Index registering another record closing mainly attributed to the macroeconomic stability with easing inflation and strengthening rupee, besides hopes of monetary easing in the coming weeks. The benchmark KSE-100 Index surged by a remarkable 2,572.11 points or 2.05% to settle at an all-time high of 128,199.43 points. Internationally, Asian stocks stumbled on Wednesday and the dollar languished near 3-1/2-year lows as investors pondered the prospect of U.S. interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23% in early trading, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78%, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after US tech firms were hit hard following a strong rally in June. Data on Tuesday showed the US labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. This is an intra-day update
The Star
02-07-2025
- Business
- The Star
Asian stocks waver, dollar sags under weight of Trump tariffs, Fed uncertainty
SINGAPORE: Asian stocks stumbled on Wednesday and the dollar languished near 3-1/2-year lows as investors pondered the prospect of U.S. interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23% in early trading, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78%, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after U.S. tech firms were hit hard following a strong rally in June. "You've seen it with other trade negotiations that they take years if you want to do them properly," said Matthias Scheiber, senior portfolio manager and the head of the multi-asset solutions team at Allspring Global Investments. "It's not something you negotiate within a week. I think that's also what the U.S. is realising now. If the tariffs get ramped up again and the situation sours, short term, we can definitely see some volatility." Data on Tuesday showed the U.S labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. Fed Chair Jerome Powell, under fire from Trump to cut rates immediately, reiterated that the U.S. central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates. Traders are pricing in 64 basis points of cuts this year from the Fed with the odds of a move in July at 21%. That maintained a bearish bias on the dollar. The euro last bought $1.1799, just below the 3-1/2-year high it touched on Tuesday. The yen was steady at 143.52 per dollar. "Any disappointing economic data can prompt further dovish repricing of FOMC rate cuts and another round of USD selling," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "The 'One Big Beautiful Bill' Act (OBBBA) and trade developments also have the potential to further weaken the USD if they undermine investor confidence about the U.S. economy." TRUMP'S BILL Investor focus over the last few days has pivoted to the progress of Trump's massive tax-and-spending bill, which is expected to add $3.3 trillion to the national debt. The legislation heads to the House of Representatives for possible final approval after U.S. Senate Republicans passed it by the narrowest of margins. The bill has stoked fiscal worries but the reaction was relatively muted after it passed the Senate. The benchmark U.S. 10-year yields were steady at 4.245% having touched a two-month low in the previous session. Aninda Mitra, head of Asia macro strategy at BNY Investment Institute, said the legislation solidifies a steady deterioration of the fiscal position and the debt trajectory of the U.S. government. "The near-term impact is mostly in the price, but the uncertainty factor could keep term premia elevated. We don't think long-term yields will fall back materially in the 6-12 month horizon." The fiscal worries, trade uncertainties and the U.S. rate path trajectory have all led investors to flee U.S. assets and look for alternatives. Investors worry that Trump's chaotic trade policies could hit U.S. economic growth. That has left the dollar unloved, with the greenback down over 10% for the year in its worst first half performance since the 1970s. The dollar index, which measures the U.S. currency against six rivals, was at 96.649, near its lowest since March 2022. In commodities, spot gold eased to $3,332.19 per ounce, after surging 1% in the previous session. The yellow metal is up 27% this year on safe-haven flows. - Reuters
