In early trading on the 5th, shipping and refining stocks are falling across the board. The expectation that tensions between the United States and Iran will ease is seen as fueling selling sentiment.
As of 9:59 a.m. on the 5th, STX Green Logis was trading at 7,240 won, down 1,110 won (13.29%) from the previous session on the Korea Exchange. At the same time, Heung-A Shipping was also trading at 2,670 won, down 235 won (8.09%).
Refining stocks are also weak. Kukdong Oil & Chemicals is plunging 10.85%, and S-Oil is down in the 2% range.
The expectation that tensions between the United States and Iran will be resolved is seen as dampening investor sentiment. Typically, refining and shipping stocks benefit when international oil prices surge due to geopolitical risks, and when prices fall, their shares correct in tandem.
The New York Times (NYT) reported on the 4th (local time) that the day after the United States and Israel began attacks toward Iran, Iran's intelligence authorities made indirect back-channel contact with the Central Intelligence Agency (CIA) through a third country and proposed discussing conditions to end the conflict.
Lee Seong-hun, a researcher at Kiwoom Securities, said, "There is a trend of partial recovery in risk appetite on expectations that the conflict between the United States and Iran could end earlier than expected."