South Korean stocks showed sharp moves on Wednesday following regulatory probes, major contracts, and rising geopolitical tensions.
South Korean defense stocks gained amid escalating tensions involving Russia after U.S. President Donald Trump said NATO members should shoot down Russian aircraft violating their airspace.
Hanwha Aerospace Co. led the gains, with its stock rising 3.88 percent to 1,043,000 won ($747) a share as of 9:10 A.M. Korea Aerospace Industries Ltd. shares added 2.47 percent, while Hyundai Rotem Co. shares climbed 2.24 percent. Poongsan Corp. shares and LIG NEX1 Co. shares were up 1.62 percent and 1.52 percent respectively.
The gains reflect investor interest amid escalating geopolitical tensions, as Trump’s remarks came during a meeting with Ukrainian President Volodymyr Zelenskyy at the UN General Assembly in New York.
Recent Russian airspace violations over NATO member states have prompted emergency consultations under NATO’s Article 4, raising concerns over potential escalation. Trump said on Tuesday that he believes NATO member countries should shoot down Russian aircraft if they enter their airspace, escalating his rhetoric against the Kremlin as its war in Ukraine drags on.
Meanwhile, DI Dongil Co. shares fell for a second consecutive day after it was identified as a victim in a high-profile stock manipulation case involving wealthy individuals. The stock was down 11.48 percent at 22,50 won as of 9:26 A.M., after tumbling 29.88 percent to 25,700 won in the previous session.
Regulators including the Financial Services Commission and Financial Supervisory Service carried out raids at over 10 locations linked to the alleged long-term manipulation scheme. DI Dongil said it was not involved and expects a thorough investigation to clarify its position.
In contrast, ExaENC shares surged after it secured a major construction contract with Samsung C&T Corp., with the stock climbing 24.58 percent at 892 won as of 9:25 A.M. The 63.1 billion won contract for the first phase of Samsung C&T’s Ph4 water supply project accounts for roughly 31 percent of ExaENC’s annual sales.
Hanwha Aerospace shares closed at 1,058,000 won, DI Dongil shares closed at 21,500 won, and ExaENC shares closed at 801 won.
By Pulse
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
