Defense shares rise, others fall after Iran fires on Israel

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Defense shares rise, others fall after Iran fires on Israel

Published: 02 Oct. 2024, 18:09 Updated: 02 Oct. 2024, 19:01

CHO YONG-JUN
cho.yongjun1@joongang.co.kr

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,561.69 on Wednesday. [NEWS1]

Shares closed lower for the third consecutive day Wednesday as investors sat on the sidelines following Iran's massive missile attack on Israel. The local currency rose against the dollar.

Iran fired a barrage of around 180 ballistic missiles at Israel on Tuesday in what Tehran said was retaliation for the recent killings of top Hezbollah and Hamas officials.

The benchmark Kospi dropped 1.22 percent, or 31.58 points, to close at 2,561.69.

Trading volume was moderate at 341.9 million shares worth 9.38 trillion won ($7.1 billion), with losers far outnumbering winners at 705 to 177.

Foreigners dumped a net 305 billion won worth of local shares, while individuals scooped up a net 987 billion won. Institutions dumped a net 705 billion won.

Investors took a wait-and-see stance after U.S. Federal Reserve Chairman Jerome Powell hinted that the Federal Open Market Committee was not in a hurry to slash rates.

“The overall fear was not alleviated amid news reports that Iran is preparing for a second attack with Israel vowing to retaliate,” KB Securities analyst Kim Ji-won said, noting that investors are rushing to safer assets.

Defense shares gathered ground amid the geopolitical tension in the Middle East, with LIG Nex1 rising 3.79 percent to 219,000 won and Hanwha Aerospace soaring 4.21 percent to 309,500 won.

Carmakers finished bearish, with Hyundai Motor sliding 2.89 percent to 237,000 won and Kia decreasing 1.2 percent to 98,700 won. Auto parts maker Hyundai Mobis fell 1.38 percent to 214,500 won.

Chemical shares closed weak, with LG Chem falling 0.84 percent to 353,500 won and SK Innovation decreasing 0.85 percent to 116,100 won. Amorepacific plunged 7.04 percent to 137,300 won.

Samsung Electronics fell 0.33 percent to 61,300 won, and chipmaker SK hynix lost 169,100 won.

The local currency was trading at 1,319.3 won against the U.S. dollar, down 11.5 won from the previous session. The Kosdaq lost 1.75 points, or 0.23 points, to close at 762.13.

Bond prices, which move inversely to yields, closed higher. The yield on the three-year government bonds lost 3.4 basis points to close at 2.777 percent, and the return on the benchmark 10-year U.S. government bonds dropped 5.0 basis points to 3.733 percent.

BY CHO YONG-JUN, YONHAP [cho.yongjun1@joongang.co.kr]