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S.Korea stocks drop as grim industry outlook hits chip giants

Credit: REUTERS/KIM HONG-JI

Round-up of South Korean financial markets:

* KOSPI index falls over 1%, foreigners net sellers

* Korean won weakens versus U.S. dollar

* South Korea benchmark bond yield falls

SEOUL, June 13 (Reuters) - Round-up of South Korean financial markets:

** South Korea's KOSPI stock index fell early on Thursday as a dimmer outlook of memory chip industry pulled down shares of chip giants — the heavyweights on the major index. The Korean won and the benchmark bond yield fell. ** As of 0225 GMT, the Seoul stock market's main KOSPI fell 22.80 points or 1.08% to 2,085.95.

** South Korean chipmakers are falling (after being) affected by a report published by Evercore ISI, which pushed U.S. chip equipment maker Lam Research down more than 5%, said Seo Sang-young, an analyst at Kiwoom Securities.

** Evercore analyst C.J. Muse feared an estimate reset in the H2 2019 time frame, combined with a memory recovery now likely pushed to H2 2020 (from H1 2020), will be headwinds that would make it difficult for shares to move higher over the near term.

** Shares of Samsung Electronics and SK Hynix , which have a combined 28% weight on the KOSPI index, lost 2.1% and 3.2%, respectively, pulling down broader KOSPI index, Seo added.

** Foreigners were net sellers of 149.4 billion won ($126.02 million) worth of shares on the main board.

** The won was quoted at 1,185.3 per dollar on the onshore settlement platform , 0.23% lower than its previous close at 1,182.6.

** In offshore trading, the won was quoted at 1,184.7 per U.S. dollar, down 0.1% from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,183.8 per dollar.

** MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.32%, after U.S. stocks slipped [MKTS/GLOB]. Japanese stocks fell 0.31%.

** The KOSPI has risen 2.46% so far this year, but lost 3.2% in the previous 30 trading sessions.

** The current price-to-earnings ratio is 12.10, the dividend yield is 1.28% and the market capitalisation is 1,242.04 trillion won.

** Trading volume during the session on the KOSPI index was 193.39 million shares and, of the total traded issues of 886, the number of advancing shares was 383.

** The won has lost 5.9% against the U.S dollar so far this year.

** In money and debt markets, June futures on three-year treasury bonds rose 0.07 points to 110.32.

** The most liquid 3-year Korean treasury bond yield fell by 1.0 basis points to 1.456%, while the benchmark 10-year yield fell by 1.0 basis points to 1.588%.

($1 = 1,185.5000 won) (Reporting by Hayoung Choi; editing by Uttaresh.V) ((hayoung.choi@thomsonreuters.com; +82 2 3704 5643; Reuters Messaging: hayoung.choi.thomsonreuters.com@reuters.net)) Keywords: SOUTHKOREA MARKETS/MIDDAY

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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