May 30, 2020

Seoul Stock Exchange breaks profit streak on China-US tensions



The Seoul Stock Exchange closed Friday with losses and thus ended its streak of five consecutive days of gains, due to the escalation of tensions between China and the United States due to the pandemic.

The benchmark Kospi index registered a decrease of 28.18 points or 1.41 percent, and ended at 1,970.30 whole, while the Kosdaq technology index fell 7.44 points or 1.04%, to 708, 58 integers.

The Seoul parquet has accumulated until today five consecutive days of earnings, encouraged, like other international markets, by hopes for a rapid economic recovery after the impact of the pandemic and by the development of a vaccine against COVID-19.

This optimism was dashed by the latest verbal attacks launched against China by US President Donald Trump on Thursday for the role of the Asian giant in managing the spread of the coronavirus after the initial outbreak in Wuhan.

Most of the Seoul Stock Exchange heavyweights ended in negative, including the local market benchmark technology tech conglomerate, Samsung Electronics, which lost 2.4%, or the country’s second-largest chipmaker, SK hynix, with a decrease of 2.52%.

The country’s leading automaker, Hyundai Motor, fell 2.78%, while its subsidiary Kia Motors declined 1.63%.

The country’s pharmaceutical leader Samsung BioLogics, by contrast, gained 1.48%.

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