Kospi closes flat as defense stocks offset tech declines amid Middle East tensions

 

Seoul shares ended flat Friday, as investors scooped up defense and shipbuilding stocks, offsetting a decline in major tech shares despite Middle East tensions. The Korean won fell against the U.S. dollar.

 

After choppy trading, the benchmark Korea Composite Stock Price Index (Kospi) edged down 0.18 points to close at 6,475.63. The index closed at a record high of 6,475.81 a session earlier.

 


 

Trade volume was moderate at 871 million shares worth 29.82 trillion won ($20.08 billion), with gainers outnumbering decliners 619 to 236.

 

Overnight, the Dow Jones Industrial Average fell 0.36 percent, and the Nasdaq composite declined 0.89 percent.

 

Foreigners sold a net 1.95 trillion won worth of local stocks, while institutions and individuals bought 807.74 billion won and 1.18 trillion won, respectively. Investor sentiment remained subdued amid little progress in U.S.-Iran talks.

 

“But sentiment was not fully dampened by uncertainties stemming from the Middle East as investors look to solid corporate earnings released or set to be released,” Cho Seung-bin, an analyst at Daishin Securities, said.

 

U.S. President Donald Trump said on Thursday he had ordered the Navy to target vessels laying mines in the Strait of Hormuz, while adding that Iran is seeking a deal and negotiations are underway. Iran has also reportedly reactivated its air defense systems.

 

Still, expectations for a second round of talks underpinned hopes of easing tensions and stabilizing the strait, a key global oil shipping route.

 

President Donald Trump speaks during an event on health care affordability in the Oval Office at the White House on April 23 in Washington. [AP/YONHAP]

 

Separately, Trump said Israel and Lebanon would extend their cease-fire by three weeks, helping to temper concerns about a broader regional conflict.

 

In Seoul, tech and auto stocks led the losses.

 

Market bellwether Samsung Electronics fell 2.23 percent to 219,500 won, while chip giant SK hynix declined 0.24 percent to 1,222,000 won. Top automaker Hyundai Motor dropped 3.57 percent to 513,400 won, and its smaller affiliate Kia shed 3.16 percent to 153,400 won. Leading refiner SK Innovation fell 0.23 percent to 132,900 won, and S-Oil shed 1.16 percent to 119,400 won.

 

Among gainers, defense giant Hanwha Aerospace Industries rose 2.67 percent to 1,463,000 won, and LIG Defense and Aerospace jumped 2.38 percent to 989,000 won.

 

The local currency weakened by 3.5 won from the previous session to trade at 1,484.50 won against the U.S. dollar at 3:30 p.m.

Yonhap