(Yonhap)
Samsung Electronics Co. and SK hynix Inc. fell in early trading on the South Korean stock market on Monday, extending losses from the previous session.
Samsung Electronics Co. shares were trading at 262,500 won ($174.51) as of 9:10 a.m., down 2.59 percent from the prior close. SK hynix Inc. shares were trading at 1.745 million won, down 4.07 percent.
Both stocks extended sharp losses from Friday, when they tumbled about 8 percent and 7 percent respectively amid heavy sell-offs.
Weakness in U.S. stocks is weighing on sentiment in Seoul after Wall Street ended lower on heavy profit-taking in technology shares.
On Friday local time, the Dow Jones Industrial Average fell 1.07 percent. The S&P 500 declined 1.24 percent and the Nasdaq Composite dropped 1.54 percent.
Investor sentiment was also pressured by concerns over a potential closure of the Strait of Hormuz and sustained high oil prices, which pushed up inflation expectations and U.S. Treasury yields.
In Seoul trading on Monday, foreign investors were net sellers of 551.3 billion won in the broader market. Retail investors and institutions recorded net purchases of 542 billion won and 44.3 billion won respectively.
Foreign investors also sold a net 368 billion won in the Kospi electronics sector, while retail investors and institutions posted net buys of 392.4 billion won and 15.9 billion won.
Meanwhile, stocks linked to Space Exploration Technologies Corp. (SpaceX) rose on Monday morning after reports that the company is accelerating its initial public offering schedule.
Mirae Asset Venture Investment Co. shares were trading at 60,800 won, up 10.75 percent, as of 9:02 a.m. Mirae Asset Securities Co. gained 1.29 percent, while Sphere Corp. rose 4.76 percent.
Mirae Asset Group reportedly invested $278 million in SpaceX during 2022 to 2023, with Mirae Asset Securities Co. and Mirae Asset Venture Investment Co. participating in the investment.
Sphere Corp. disclosed in regulatory filings that it signed a 10-year contract in July last year to supply specialty alloys to SpaceX.
Reuters and other outlets reported that SpaceX is expected to go public on June 12, earlier than market expectations of June 28.
SpaceX operates the Starlink satellite internet service and the Starship program, and was valued at $1.25 trillion following its February merger with artificial intelligence startup xAI. The company plans to raise $70 billion to $75 billion through the listing.
In an overall weak market, Hyundai Marine & Fire Insurance Co. surged in early trading after reporting improved insurance profitability.
The stock was trading at 36,300 won, up 8.85 percent, as of 9:33 a.m. The stock opened up 4.35 percent and briefly climbed as much as 11.39 percent.
The company reported on Friday that first-quarter separate net profit rose 9.9 percent year on year to 223.3 billion won. The result included about 90 billion won in one-off gains from changes in accounting standards and exceeded market expectations.
Revenue rose 10 percent to 4.62 trillion won, while operating profit increased 8.5 percent to 309.3 billion won. Insurance contract service margin stood at 9.17 trillion won, up 0.7 percent from a year earlier.
Analysts pointed to improving insurance profitability as a key driver.
KB Securities Co. raised its target price to 41,000 won from 38,000 won and maintained a buy rating, citing stronger-than-expected insurance profit trends reflected in return on equity estimates.
Samsung Securities Co. lifted its target price to 44,000 won from 42,000 won, pointing to structural improvements in contract quality since the second half of 2024 and a slower pace of incurred loss growth compared with peers.
Shinhan Investment Co. raised its target price to 45,000 won from 42,000 won, citing potential for a mid- to long-term re-rating despite weaker new contract volumes, while noting dividend restrictions tied to the reserve system for surrender value liabilities as a downside risk.
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