Warren Buffett’s stock unload dampens outlook for S. Korean banks

South Korea’s major financial groups and their flagship lenders are projected to exhibit weaker performances this year, analysts said Monday, as they were rattled by Warren Buffett’s recent offloading of big bank stocks coupled with new circumstances under the COVID-19 crisis. Following reports of the Berkshire Hathaway CEO’s unloading of airlines and big bank stocks such as Goldman Sachs and US Bancorp last week, share prices of four major banking groups here -- Shinhan, KB

May 18, 2020

Gold prices hit record high on escalating US-China tension

Gold prices rose to a record high on Monday as investors sought to park their money in safer destinations amid the COVID-19 pandemic and renewed tensions between the US and China, data showed. According to the Korea Exchange Gold Market, the price stood at 69,840 won ($56.66) per gram at Monday’s close, jumping 1,190 won, or 1.73 percent, from the previous session’s close. The price had surged to 70,000 won the same day, the highest since April 27, when the figure reached 68,890 w

May 18, 2020

Banking groups add momentum to digital financing amid coronavirus fallout

Reacting to the untact market trend triggered by the COVID-19 outbreak, South Korea’s financial groups are scrambling to gain an upper hand in digital financing. Untact, or non-face-to-face, has become a new standard in the local financial industry as consumers are increasingly turning to contactless financial services via smartphones amid fears of the ongoing COVID-19 or other plausible contagious diseases in the future. While the number of visitors to local bank branches decreased by

May 18, 2020

Seoul stocks close higher on hopes of global stimulus

South Korean stocks closed higher Monday on hopes of global stimulus measures and rising oil prices. The local currency fell against the US dollar amid a renewed trade dispute between the United States and China. The benchmark Korea Composite Stock Price Index (KOSPI) gained 9.83 points, or 0.51 percent, to close at 1,937.11. Trading volume was moderate at about 752.7 million shares worth some 9.24 trillion won ($7.49 billion), with losers outnumbering gainers 424 to 423. The index got off t

May 18, 2020

NH Investment joins consortium to acquire stake in UAE’s natural gas pipeline

NH Investment & Securities, the brokerage unit of South Korea’s NongHyup Financial Group, has joined a consortium to acquire a stake in the United Arab Emirates’ state-owned Abu Dhabi National Oil Company’s natural gas pipelines, according to investment banking sources Monday. It is part of the $8 billion project financing from the oil firm, composed of the American private equity fund firm Canadian Brookfield Asset Management, Italian infrastructure operator Snam, Ontari

May 18, 2020

Illicit stock trading soars in 2019 amid uncertainties

Incidents of suspected illicit stock trading soared last year, reflecting the rampant amount of false and exaggerated information in the market amid uncertainties, the Korea Exchange said Sunday. The bourse operator’s market supervisory committee reported that 120 suspected cases of unfair transactions were observed here last year, up from 118 in 2018 and 117 in 2017. Of the total, illicit trading accounted for 28 cases, or 23.3 percent, up 47.4 percent -- 19 more cases -- from a year e

May 18, 2020

S. Korean shares open lower on tech, auto losses

South Korean stocks opened slightly lower Monday with major techs and autos suffering heavy losses. The benchmark Korea Composite Stock Price Index (KOSPI) shed 3.86 points, or 0.20 percent, to 1,923.42 in the first 15 minutes of trading. Large caps traded mixed. Market kingpin Samsung Electronics lost 0.21 percent, while No. 2 chipmaker SK hynix plunged 3.17 percent. Leading carmaker Hyundai Motor slipped 0.87 percent, with its smaller affiliate Kia Motors losing 0.34 percent. Pharmaceuti

May 18, 2020

FSC pledges to tackle overheated ETFs amid pandemic

South Korea’s financial regulator has vowed to gain control over the country’s overheated exchange-traded funds, even at the cost of a temporary market contraction. The Financial Services Commission has recently unveiled a road map to normalize exchange-traded funds and exchange-traded notes, bolstering the mandatory education of brokerages and the minimum deposits of investors. “Short-term adjustments are inevitable in order to normalize the currently excessive speculative d

May 17, 2020

Virus-hit firms look to raise capital to ensure liquidity

As the number of moviegoers, air passengers and shoppers shrank sharply largely due to the coronavirus outbreak and social distancing, related companies have recently turned to fundraising efforts to meet the deadline for debt repayment or refinancing. Also, those raising share capital are offering equities at a discounted price to subscribers in order to ensure success. A leading example is multiplex cinema operator CJ CGV, which aims to raise 250.2 billion won ($202.9 million) in July from in

May 17, 2020

BOK likely to cut interest rate amid virus pandemic

Amid the prolonged economic fallout from the COVID-19 pandemic, the Bank of Korea may slash its policy rate at the next monetary policy board meeting, according to local brokerages Sunday. The yield of three-year treasury bonds on Friday closed at 0.87 percent, down 0.13 percentage point from end-April, while that of 10-year bonds fell to 1.38 percent, down 0.14 percentage point during the same period. Bond prices, which move inversely to yields, have been on a sharp decline since market expe

May 17, 2020

Nexon's market cap tops W20tr on soaring demand amid virus pandemic

Nexon Co. became the first South Korean game developer to log a market capitalization of more than 20 trillion won ($16 billion), data showed Sunday, on the back of soaring demand for home entertainment contents during the virus pandemic. The gaming giant saw its market value reach 1.9 trillion yen (21 trillion won) on the Tokyo Stock Exchange as of Friday, with its shares closing at 2,152 yen, up 3.86 percent from a session earlier, industry data showed. Shares in Nexon jumped a whopping 14

May 17, 2020

Seoul shares set to trade in tight range next week on pandemic, US-China tension

South Korean stocks are expected to trade in a tight range next week due to the growing tension between the United States and China, coupled with a rise in new virus cases here, analysts said Saturday. The benchmark Korea Composite Stock Price Index closed at 1,927.28 points Friday, down 0.95 percent from a week earlier. On Monday, the stock market lost ground on growing concerns over new cluster infections of COVID-19 in the capital city. South Korea had added fewer than 15 cases of COVID-1

May 16, 2020

Coupang, KB Kookmin to start early payout for virus-hit SMEs

E-commerce giant Coupang said Friday it has partnered with KB Kookmin Bank to launch early payout services for merchants, through which small and medium-sized business owners will receive payment for their sales in advance of the regular payday. Through the early payout on Coupang’s Marketplace, the nation’s biggest online platform for merchants, the e-commerce firm aims to financially support the coronavirus-hit SMEs, who are in need of cash either to pay their employees’ sa

May 15, 2020

Seoul stocks nearly flat after choppy session

South Korean stocks closed slightly higher Friday after a choppy session as investors sat on the sidelines over the growing concerns over the diplomatic and economic tension between the United States and China. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index moved up 2.32 points, or 0.12 percent, to finish at 1,927.28. Trading volume was moderate at 850 million shares worth 9.55 trillion won ($7.75 billion), with gainers outpacing losers 485 to 360.

May 15, 2020

Seoul stocks open higher on Wall Street gains

Seoul stocks opened higher Friday, tracking the overnight gains from Wall Street as investors welcomed the gradual reopening of businesses across the globe, including the United States. The benchmark Korea Composite Stock Price Index added 7.64 points, or 0.4 percent, to 1,932.60 in the first 15 minutes of trading. After trading in negative terrain earlier in the sessions, the Dow Jones Industrial Average eventually advanced 1.62 percent overnight, while the Nasdaq Composite gained 0.91 perc

May 15, 2020

Yuanta Korea offers access to US stock reports

Yuanta Securities Korea said Thursday it has partnered with multinational financial market data provider Refinitiv to mount a new stock search engine function on its trading system for investors in US stocks. The service, dubbed “Reuters tRadar,” will allow users to access Refinitiv’s stock reports related to US stocks and their forecasts on the company performance based on its Institutional Brokers’ Estimate System database, which comprise the combined estimates of som

May 14, 2020

Seoul stocks end lower on grim economic outlook

South Korean stocks closed lower Thursday as investor sentiment was dented by a grim forecast for global economic recovery amid the novel coronavirus pandemic. The Korean won fell against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) shed 15.46 points, or 0.80 percent, to close at 1,924.96 Trading volume was high at 744 million shares worth 9.3 trillion won ($7.5 billion), with losers outnumbering gainers 638 to 229. The index never moved above the flatline through

May 14, 2020

Foreign investors expected to return to stock market from H2

Foreign investors will return to the Korean stock market starting from the second half of the year if the US job market hits rock bottom in June, according to a local brokerage Thursday. “If figures on the US labor market hit a low point in June, offshore investors are highly likely to inject their capital into the local stock market from July,” said Lee Eun-taek, an analyst at KB Securities. “They will eye large-cap stocks first.” The US’ monthly employment repo

May 14, 2020

Seoul stocks open lower on Wall Street losses

Seoul stocks opened lower Thursday, tracking losses on Wall Street amid the new coronavirus pandemic. The benchmark Korea Composite Stock Price Index (KOSPI) fell 24.37 points, or 1.26 percent, to 1,916.05 in the first 15 minutes of trading. US stocks plunged Wednesday (local time) after Federal Reserve Chair Jerome Powell expected a slow economic recovery from the novel coronavirus fallout. Investor sentiment was also hit by growing concerns over tensions between the United States and Chin

May 14, 2020

Credit card use posts smaller dip in April amid virus slowdown

Credit card spending by Koreans dipped at a slower rate in April than the previous month amid the COVID-19 infection slowdown, industry data showed Wednesday.  Combined credit card spending last month decreased by 2.9 percent from a year earlier to reach some 54.5 trillion won ($44.5 billion), marking a smaller dip compared to 6.7 percent in March, said Rep. Park Kwang-on of the ruling Democratic Party of Korea, quoting data compiled by eight credit card issuers: Shinhan, Samsung, KB Koo

May 14, 2020