Defence stocks rise in S. Korea as autos, shipbuilders fall amid global tensions

Seoul, March 29 (IANS) The market capitalisation of defence stocks rose while that of auto and shipbuilding shares fell on the benchmark Korea Composite Stock Price Index (KOSPI) about a month after U.S.-Israeli air strikes on Iran, bourse data showed on Sunday.

According to data by the Korea Exchange (KRX), Samsung Electronics Co. retained the top spot in market capitalization, with 1,063.8 trillion won (US$705 billion) as of Friday, followed by SK hynix Inc. with 657.1 trillion won, reports Yonhap news agency.

Top carmaker Hyundai Motor Co. remained in third place, but its market value declined 26.6 percent to 101.3 trillion won between Friday and Feb. 27, a day before the outbreak of the military conflict in the Middle East, as prolonged regional tensions disrupted the global supply chains and pushed up oil prices.

Its sister Kia slipped two notches to ninth place, with its market cap plunging 24.2 percent over the same period.

Major shipbuilder HD Hyundai Heavy Industries Co. saw its market value decline 17.3 percent, dropping to 11th place from ninth.

However, defence giant Hanwha Aerospace saw its market capitalisation increase 11.7 percent to 68.8 trillion won from 61.6 trillion won over the cited period, with its ranking climbing three notches to seventh.

LIG Nex1 Co.'s market value surged 44.4 percent, and Hanwha Systems Co. rose 9.2 percent.

Meanwhile, South Korean stocks closed a tad lower on Friday after paring most of their earlier losses amid the United States' mixed signals on its war against Iran and eased concerns over the chipmaking industry. The local currency lost ground against the greenback.

After opening 2.93 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) fell 21.59 points, or 0.4 percent, to end at 5,438.87, after dipping to as low as 5,220.10.

Trade volume was moderate at 889.8 million shares worth 23 trillion won (US$15.3 billion), with losers and winners almost even at 441 to 436.

—IANS

na/