PKX

Alaskan Delegation Visit: Governor Mike Dunleavy and a delegation from Alaska are visiting South Korea to discuss reviving a stalled $44 billion natural gas project, which aims to transport gas via a pipeline from Alaska to potential buyers in Asia, including South Korea.

Trade Relations and Tariffs: The visit also comes amid tensions regarding trade tariffs, as President Trump plans to impose reciprocal tariffs on countries with trade surpluses, while South Korea disputes claims about its tariff rates on U.S. imports.

South Korean Steelmakers' Investment Plans: POSCO and Hyundai Steel are considering investments in the U.S. due to new tariffs on steel and aluminum imports, which have negatively impacted the Korean steel industry. The South Korean government plans to support domestic firms in expanding overseas.

European Steel Market Concerns: European steelmakers fear a surplus of steel as exports diverted from the U.S. may flood their market, prompting calls for protective measures from the EU. Companies like Thyssenkrupp and Salzgitter express concerns over long-term damage to the European market due to increased import pressure.

Top Performing Stocks: Ten large-cap stocks saw significant gains last week, with Okta Inc leading at a 24.26% increase following strong Q4 results and analyst upgrades, while other notable performers included Arcelor Mittal (19.50%) and ING Groep (16.98%).

Market Influences: The stock market was buoyed by various factors including strength in gold and silver prices, share repurchase announcements, and positive economic forecasts from China, contributing to overall market strength.

South Korea's Anti-Dumping Measures: The South Korean government plans to impose provisional anti-dumping duties of up to 38% on Chinese hot-rolled thick steel plates to protect its local steel industry, following a complaint from Hyundai Steel regarding Chinese dumping practices.

Posco Holdings Financial Struggles: Posco Holdings reported a significant net loss in Q4 and a nearly 50% decline in full-year net profit, attributing these challenges to weak demand and oversupply from Chinese steel products.

Impact of New Tariffs: South Korean steelmakers' shares fell sharply after U.S. President Trump announced new 25% tariffs on all steel and aluminum imports, with POSCO and Hyundai Steel experiencing significant declines.

Broader Market Reaction: The announcement also negatively affected South Korean automakers, leading to a drop in shares for Hyundai Motor and Kia Corp, while the benchmark KOSPI index decreased by 0.5%.

Validea's Upgrade on POSCO Holdings: Validea's Value Investor model, based on Benjamin Graham's strategy, has upgraded POSCO Holdings Inc (PKX) from a rating of 71% to 86%, indicating strong interest due to the company's solid fundamentals and valuation metrics.

Overview of POSCO Holdings: POSCO Holdings is a major player in the Iron & Steel industry, involved in manufacturing steel products and global trading, with additional segments in engineering, construction, and other services.

Validea's Upgrade on POSCO Holdings: Validea's Value Investor model, based on Benjamin Graham's strategy, upgraded POSCO Holdings Inc (PKX) from a rating of 71% to 86%, indicating strong interest due to the company's solid fundamentals and valuation metrics.

Overview of POSCO Holdings: POSCO Holdings is a major player in the Iron & Steel industry, involved in manufacturing steel products and engaging in global trade, engineering, construction, and other related services.

Worst Performing Stocks: Eleven large-cap stocks experienced significant declines last week, with Texas Pacific Land Corporation and Microchip Technology Incorporated leading the losses at 16.35% and 13.03%, respectively, due to various negative news including OPEC's supply decision and halted government grant applications.

Market Reactions: Other notable declines included Intel Corporation down 13.01% after CEO retirement, UnitedHealth Group down 9.93% following a tragic event involving its CEO, and Halliburton Company losing 9.67% amid Middle East conflicts affecting commodity prices.

Political Uncertainty in South Korea: President Yoon Suk Yeol faces a 37% chance of impeachment and a 29% chance of removal from office, leading to instability in financial markets and declines in major stocks like Samsung and Hyundai.

Impact on Cryptocurrency Market: The political turmoil caused significant drops in Bitcoin and Ethereum prices on South Korean exchanges, with the Korea Premium Index reflecting retail selling pressure; however, prices stabilized after Yoon reversed a martial law decision.

Market Reaction to Political Unrest: South Korean markets experienced significant declines, with the Kospi index falling 1.15% and the Kosdaq 100 dropping 2.64%, following President Yoon Suk Yeol's brief imposition of martial law amid parliamentary opposition.

Impact on Major Stocks and Currency: Major technology and industrial stocks, including Samsung Electronics and Hyundai Motor, saw losses, while the South Korean won weakened against the U.S. dollar, reflecting the political turbulence's effect on the economy and global supply chains.

Stock Market Reaction: South Korean stocks fell sharply after President Yoon Suk Yeol declared martial law, with significant declines in major companies and the South Korean won dropping 3% against the US dollar.

Martial Law Declaration and Reversal: The martial law aimed to combat pro-North Korean forces and restrict political activities, but was quickly overturned by parliament, leading to a partial recovery in stock prices as the government promised financial support.

POSCO Holdings Inc RSI Analysis: POSCO Holdings Inc has an RSI reading of 28.4, significantly lower than the average of 48.4 for metals and mining stocks, indicating potential exhaustion of recent selling pressure.

Stock Performance Overview: The stock's current trading price is $47.99, down 3.9% on the day, with a 52-week range between $46.04 and $96.981, suggesting possible entry points for bullish investors.

Martial Law Lifted: South Korea's President Yoon Suk Yeol lifted his martial-law declaration after Parliament voted unanimously against it, rejecting his claims of vulnerability to North Korean forces.

Parliamentary Response: The vote took place early Wednesday morning, with lawmakers overcoming obstacles to gather at the National Assembly and decisively opposing the martial law measure.

Martial Law Lifted: South Korea's President Yoon Suk Yeol announced the lifting of martial law after Parliament voted 190-to-0 against it, rejecting his claims about political vulnerabilities to North Korea.

Tense Parliamentary Session: The vote took place early Wednesday morning after lawmakers bypassed security measures to enter the National Assembly, following the president's declaration of martial law just hours earlier.

Unexpected Martial Law Declaration: South Korean President Yoon Suk Yeol unexpectedly declared martial law, citing domestic political instability and threats from North Korea, leading to significant market reactions including a 4.4% drop in the iShares MSCI South Korea ETF and a 2% decline in the won against the dollar.

Political Context and Market Impact: The declaration was prompted by opposition parties' actions in parliament, and it raised concerns about the stability of Korea's political system, with major South Korean companies facing stock declines as investors reacted to the news.

Martial Law Declaration: South Korea's President Yoon Suk Yeol unexpectedly declared martial law, citing threats from opposition parties and North Korea, prompting a unanimous parliamentary vote to end it shortly after. This declaration is the first since the 1980s and has raised concerns about potential political turmoil and protests against Yoon's leadership.

Market Reactions and Economic Implications: The announcement led to significant market declines, with South Korean stocks and currency weakening, while analysts predict ongoing volatility in the semiconductor sector and broader economic instability, potentially impacting global supply chains.

Stock Performance After Election: Following Kamala Harris's loss in the 2024 U.S. election, several large-cap stocks experienced significant declines, with Moderna, Honda, and Akamai among the worst performers, each dropping over 10%.

Factors Influencing Stock Declines: The downturns were attributed to various factors including weak vaccine demand for Moderna, reduced profit forecasts for Honda, and negative revisions in guidance from Akamai, along with concerns about AstraZeneca's insurance fraud allegations.

52 Week Range and Current Price: VEU's share price has a 52-week low of $51.82 and a high of $63.81, with the latest trade at $60.29, which is useful for technical analysis alongside the 200-day moving average.

ETFs Trading Dynamics: Exchange traded funds (ETFs) function like stocks but involve trading 'units' that can be created or destroyed based on investor demand, impacting the underlying holdings significantly during notable inflows or outflows.

ETF Analyst Target Prices: The SPDR S&P Global Natural Resources ETF (GNR) has an implied analyst target price of $63.07 per unit, indicating a potential upside of 12.44% from its current trading price of $56.09.

Notable Holdings with Upside Potential: Key holdings within GNR, such as POSCO Holdings Inc, Petroleo Brasileiro SA, and ArcelorMittal SA, show significant upside potential based on analysts' target prices, ranging from approximately 25.80% to 32.79%.

Global Steel Production Decline: Global steel production fell by 7% year-over-year in August 2023, with a significant drop of 13% in China, while production outside China saw a slight increase of 2%. The decline is attributed to weakening demand and negative profit margins leading to increased downtime for producers.

Market Trends and Future Outlook: Steel prices are rising in China and the US due to higher mill prices and steady demand, while the European market faces challenges with falling prices due to low demand and competition from imports. UBS analysts predict potential boosts in demand and pricing by 2025, despite ongoing risks in the sector.