South Korea shares on track for second weekly decline as chipmakers drag

Business Recorder, citing Reuters, reported that the KOSPI slipped 0.87 per cent on Thursday, losing 59.48 points to 6,744.42. The index is heading for a second straight weekly fall, down 3.71 per cent for the week, as weakness in chipmakers and inflation worries linked to higher oil prices weighed on sentiment. South Korean markets will remain shut on Friday for a public holiday, shortening the trading week.

Samsung Electronics, a chipmaker, lost 0.74 per cent, while SK Hynix gained 0.29 per cent. Samsung Electronics forecast third-quarter profit above 100 trillion won, or $74.75 billion, which would mark a first for any technology firm worldwide. The projection implies earnings rising almost nine times on strong memory sales linked to demand for artificial intelligence chips.

Among other heavyweights, LG Energy Solution rallied 6.01 per cent, while Hyundai Motor and Kia Corp dropped 3.13 per cent and 2.46 per cent respectively. Foreign investors were net sellers of shares worth 526.7 billion won, even though the index is still up 60.04 per cent this year. The won has gained 7.5 per cent against the dollar this year, while the benchmark 10-year bond yield eased 3.2 basis points to 4.359 per cent.