South Korean shares slipped on Thursday despite record September exports, as elevated oil prices and uncertainty over Middle East energy supplies weighed on sentiment. The KOSPI fell 14.60 points, or 0.21%, to 6,823.44 as of 00:56 GMT, according to Reuters. The benchmark index had risen as much as 1.4% earlier in the session before succumbing to pressure from oil price concerns. Foreign investors were net sellers of shares worth 494.4 billion won, continuing their selling pressure despite the strong export data. The reversal puts the Kospi on track for its biggest quarterly decline since early 2020, ending a six-quarter winning streak that began in the first quarter of 2020.
Despite market weakness, South Korea's exports surged 83.5% year-on-year in September to a record $120.9 billion, according to government data reported by Reuters. The dramatic increase was driven largely by semiconductor shipments, which more than tripled amid strong global spending on artificial intelligence. However, investors remained cautious as oil prices stayed elevated and uncertainty persisted over the stability of oil supplies from the Middle East. Among major stocks, Samsung Electronics fell 0.19% while SK Hynix gained 0.23%, with the semiconductor sector showing mixed performance despite the strong export data.
South Korean chipmakers Samsung Electronics Co. and SK Hynix Inc. are completing their massive share repurchase program ahead of schedule, creating uncertainty for the benchmark Kospi index. According to reports from Bloomberg, the companies announced in late August plans to buy back a combined 55 trillion won of their own shares, with the program originally expected to end around the second half of November. However, the chipmakers have already completed about 80% of the planned buybacks at the current pace, meaning the buying could be over by mid-October — approximately one month earlier than anticipated. As reported by Reuters, Samsung Electronics fell 0.19% while SK Hynix rose 0.23% after advancing more than 3% earlier in the session.
The South Korean won weakened to 1,359.4 per dollar on the onshore settlement platform, down 0.27% from its previous close of 1,355.7, according to Reuters. Market breadth remained weak, with 487 of the 905 traded issues declining, compared with 354 that advanced. The Kospi has gained 61.92% so far this year, while the won has strengthened 5.9% against the dollar over the same period. Of the 911 stocks traded on the South Korean exchange, 406 advanced and 453 declined, reflecting the broad-based nature of the market pressure.
In the bond market, December futures on three-year Treasury bonds fell 0.07 point to 102.30, while the yield on the most liquid three-year South Korean Treasury bond rose 2.4 basis points to 4.035%, as reported by Reuters. The benchmark 10-year yield increased 5 basis points to 4.451%. South Korea's finance minister said authorities were closely monitoring domestic bond markets and would take measures to stabilise markets if yields rose excessively. The bond market movements reflect investor concerns about the broader economic outlook amid the current market volatility and oil price uncertainty.
