Chip, shipping, renewable stocks move on tariffs, buyback news

(AP/Yonhap)

South Korean chipmakers saw their shares fall in early trading Monday after U.S. President Donald Trump signaled new tariffs on semiconductors.

Samsung Electronics’ stock was down 0.98 percent at 70,900 won ($52) as of 9:03 a.m., while SK hynix’s slid 2.17 percent to 270,500 won. The declines followed Trump’s remarks on Friday that his administration would set tariffs on steel and semiconductor chips as early as next week. The U.S. president added that rates would start low to encourage plant construction in the United States but would rise significantly later.

The announcement dragged down Wall Street on the same day, with the Philadelphia Semiconductor Index dropping 2.26 percent, the Nasdaq Composite falling 0.40 percent, and the S&P 500 sliding 0.29 percent.

Meanwhile, shipper HMM saw its shares surge 8.14 percent to 23,900 won at 9:11 a.m. after the company unveiled a 2.14 trillion won tender offer to buy back and cancel more than 81.8 million shares at 26,200 won per share - a 19 percent premium to the previous close.

Solar-related stocks also gained after the Trump administration’s clean energy tax credit rules turned out to be less restrictive than feared. HD Hyundai Energy Solutions rose 4.45 percent to 45,800 won as of 9:20 a.m., while Hanwha Solutions (1.67 percent), Daemyung Energy (2.61 percent), and SK eterynix (1.07 percent) also saw an upward tick in their shares.

Separately, Korea Electric Power Corp.’s stock gained 3.86 percent to 40,350 won at 9:49 a.m. after Korean President Lee Jae-myung said electricity rates would inevitably rise as the country increases renewable energy production to meet its greenhouse gas reduction targets.

Samsung Electronics shares closed at 70,000 won, SK hynix’s shares closed at 267,500 won, HMM shares closed at 23,650 won, HD Hyundai Energy Solutions shares closed at 47,750 won and Korea Electric Power shares closed at 39,450 won.