NewKerala.com

Seoul Shares Dip on Middle East Tensions and Profit Taking

South Korean stocks opened lower on Friday as investors engaged in profit hunting after a recent rally to record highs. Renewed military tensions between the United States and Iran in the Strait of Hormuz added to market uncertainty. Major stocks like Samsung Electronics and SK hynix declined, while the Korean won weakened against the U.S. dollar. Meanwhile, the government extended fuel price ceilings for another two weeks to stabilize domestic energy costs.

Key Points: Seoul Stocks Open Lower Amid Iran-US Tensions

  • Seoul shares open 2.19% lower on profit taking
  • US-Iran clash in Strait of Hormuz renews tensions
  • Wall Street closed lower overnight
  • Samsung, SK hynix, LG Energy Solution decline
  • Government freezes fuel price ceilings for third time
2 min read

Seoul shares open lower on profit hunting amid renewed tensions in Middle East

Seoul shares fall 2.19% as profit hunting and renewed US-Iran clashes in the Strait of Hormuz weigh on markets. Samsung, SK hynix lead declines.

"The U.S. and Iran clashed in the Strait of Hormuz, putting ongoing progress in the Washington-Tehran peace talks in doubt. - Yonhap News Agency"

Seoul, May 8

South Korean stocks started lower on Friday on profit hunting following a recent rally and renewed military tensions in the Middle East after the United States and Iran exchanged fire.

Opening 1.82 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) lost 163.99 points, or 2.19 per cent, to 7,326.06 as of 9:15 a.m, reports Yonhap news agency.

The index had been on a bullish run to hit record highs for three consecutive sessions starting Monday, gaining nearly 1,000 points to close at a fresh high of 7,490.05 on Thursday.

Overnight, the U.S. and Iran clashed in the Strait of Hormuz, putting ongoing progress in the Washington-Tehran peace talks in doubt.

Iran claimed that the U.S. targeted Iranian ships entering the strait, while the U.S. military said it acted in self-defence after Iran attacked its navy destroyers that were passing through the waterway.

Against this backdrop, Wall Street finished lower. The Dow Jones Industrial Average declined 0.63 percent, the S&P 500 0.38 percent and the tech-heavy Nasdaq composite 0.13 percent.

In Seoul, most shares opened lower. Market bellwether Samsung Electronics sank 3.5 percent, and chip giant SK hynix dipped 2.72 percent.

Leading battery maker LG Energy Solution declined 1.66 percent, and energy company Doosan Enerbility tumbled 5.28 percent.

Major shipyard HD Hyundai Heavy Industries lost 4.33 percent, and defence giant Hanwha Aerospace slipped 1.97 percent.

The Korean won was trading at 1,461.15 won against the U.S. dollar at 9:15 a.m., down 7.15 won from the previous session.

Meanwhile, the government froze the price ceilings on fuel products for the third consecutive time Thursday, in the face of continued volatility in global energy prices.

The move is expected to help lower the living costs for ordinary people.

Maximum prices for regular gasoline, diesel and kerosene supplied to gas stations by local oil refineries will remain unchanged at 1,934 won (US$1.33), 1,923 won and 1,530 won per liter, respectively, for the next two weeks, according to the Ministry of Trade, Industry and Resources.

The government sets maximum prices for fuel products every two weeks under the price cap system introduced in mid-March to stabilize domestic fuel prices.

- IANS

Share this article:

Reader Comments

A
Aditi M
Profit booking after 3 consecutive record highs was inevitable. The KOSPI has been on an incredible run just like our Sensex 😊. But geopolitical risks always remind us how interconnected our economies are. Stay cautious investors!
S
Suresh O
Honestly, these Middle East tensions are getting exhausting. Every time there's a skirmish, markets tank and fuel prices soar. Korea's price cap on fuel is a good step, but India needs to diversify its energy sources faster. Solar and nuclear should be our priority.
N
Nisha Z
Samsung and SK hynix dropping 3.5% and 2.7% respectively shows even tech giants aren't immune. As an Indian investor with some Korean exposure, I'm not panicking though. These are short-term corrections. The long-term story remains strong. Just need peace in West Asia.
J
James A
Interesting how Korea's currency is weakening against the dollar. This might actually help their exports in the long run, including competition with India in certain sectors. But the immediate concern is fuel price volatility that affects us all.
A
Arun Y
The Strait of Hormuz is literally the world's most important oil chokepoint. Every time there's tension there, it's not just Korea - India, China, everyone feels the heat. Good on Seoul for capping fuel prices. Our own government should be similarly proactive instead of just blaming global factors.
R

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50