June 12, 2018 / 7:36 AM / 9 months ago

S.Korea stocks, won steady as U.S.-N.Korea summit concludes

    * KOSPI basically flat as Trump meets Kim in Singapore
    * N.Korea-exposed shares fall on profit-taking after rallies
    * Seoul markets closed just after Singapore summit ends
    * Trump, Kim sign document at landmark summit

 (Updates with closing figures)
    SEOUL, June 12 (Reuters) - South Korean shares and the won
reacted calmly on Tuesday to the United States-North Korea
summit, which ended just before Seoul financial markets closed
for the day and did not impact prices.
    Analysts said South Korean markets had priced in a
successful summit in Singapore, and were not affected
immediately by the result.
     The benchmark KOSPI index (KOSPI)        , which briefly
inched back into positive territory mid-session, closed
virtually unchanged, down 0.05 percent at 2,468.83. 
    The won            closed at 1,077.2 against the dollar,
down 0.19 percent versus Monday's close of 1,075.2.
    "Market players already have priced in some kind of peace
treaty. There are downside risks to growth fundamentals in
emerging economies, so it would take more than just shared
understanding on denuclearization to move the ball," said Kim
Doo-un, an analyst at KB Investment & Securities.
    He was referring to recent upswings in the KOSPI as the
index rose seven of the past nine sessions. 
    "The peace on the Korean peninsula could deliver significant
benefits to both North and South Korea, including potentially a
re-rating for South Korean stocks," DBS said in a report before
the summit ended. 
    "However, it would be prudent to contain excessive optimism,
given the enormous gulf between the two Koreas and the costs of
reunification," DBS added.
    Trump and Kim signed a two-page document in Singapore and
confirmed the common goal of "a nuclear free Korean Peninsula",
but the document did not explicitly define the scope of
    The steam came out of some South Korean stocks that could
potentially benefit from inter-Korea projects after weeks of
rallying leading up to the summit, on profit-taking. 
    Hyundai Cement            , which could benefit from
infrastructure projects for the North, declined 9 percent while
Hyundai Elevator             fell 3.6 percent. 
    Market heavyweights such as Samsung Electronics            
and SK Hyunix             edged down 1 percent and 0.9 percent,
    Offshore investors were on track to be net sellers for the
day, offloading 123 billion won ($114.28 million) of KOSPI
shares at closing.
    Declining issues outnumbered advancing ones 492 to 323. 
    June futures on three-year treasury bonds         rose 0.02
points to 107.92. 
                       0630 GMT    Prev close
 Dollar/won             1,077.2       1,077.1
 Yen/won                9.7529         9.7763
 *KTB futures            107.90        107.90
 KOSPI                 2,468.83      2,470.15
 * Front-month futures on three-year treasury bonds

For a round up of market news, please see our daily Asia Morning
Call report            
   ($1 = 1,074.7000 won)

($1 = 1,076.2700 won)

 (Reporting by Cynthia Kim; Editing by Richard Borsuk)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below