South Korean stocks faced a decline on Thursday morning as uncertainties loomed over the terms of a two-week ceasefire between Washington and Tehran. The benchmark Korea Composite Stock Price Index (KOSPI) dropped by 0.99 percent to 5,814 by 11:20 am local time. The ceasefire agreement between the United States and Iran, which includes the reopening of the crucial Strait of Hormuz, was reached on Tuesday.
Amidst the ceasefire, tensions persisted in the Middle East as disagreements arose between the U.S. and Iran regarding the ceasefire’s scope, particularly concerning Israel’s offensive against Lebanon. Analyst Han Ji-young from Kiwoom Securities highlighted the ongoing discord between Washington and Tehran over issues such as Iran’s uranium enrichment and control of the Strait of Hormuz. Despite these uncertainties, Han expressed that the South Korean stock market is not expected to witness significant volatility.
In the market, top companies like Samsung Electronics and SK hynix experienced declines, while oil refiners saw gains due to a rebound in global crude prices amidst geopolitical uncertainties. SK Innovation rose by 3.32 percent, and S-Oil climbed by 5.89 percent. The automotive sector showed mixed results, with Hyundai Motor declining by 0.98 percent and Kia registering a 1.07 percent increase. Tech giants like Naver and Kakao also faced declines in their stock values.
The local currency, the won, was trading at 1,479.9 against the greenback at 11:20 am, marking a decrease of 9.3 won from the previous session.
