South Korean stocks inched down 0.31 percent on Wednesday as foreign investors turned net sellers in nine sessions at the start of corporate earnings season, analysts said. The local currency declined against the U.S. greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 6.16 points to 2,000.50. Trading volume was moderate at 267 million shares worth 3.7 trillion won ($3.66 billion), with decliners outnumbering gainers 430 to 387.
“Foreigners retreated from the Korean market as U.S. stock market dropped for a second straight session,” said Kim Hak-kyun, a senior researcher from KDB Daewoo Securities.
Foreigners, one of the main driving powers in the Korean equity market, dumped a net 59.9 billion won worth of local shares, snapping their nine consecutive buying streak.
Second-quarter earnings season started with tech giant Samsung Electronics’ discouraging estimate on Tuesday, but the impact has been limited as the market had anticipated the lagging performance, the analyst said.
“The index will hover around 2,000 points for a while as investors will be cautious before more large-cap companies release their earnings,” said Kim. “Currently, there are no big issues to drag down or push up the figures.”
Samsung Electronics gained for two straight sessions even after the release of worse-than-expected operating profit, rising 1 percent to 1,308,000 won.
Air carriers finished lower, with market No. 1 Korean Air dipping 0.29 percent to 34,150 won and runner-up Asiana Airlines decreasing 0.88 percent to 4,490 won.
Leading shipper Hyundai Merchant Marine rose 0.44 percent to finish at 9,140 won, and Hanjin Shipping fell 1.72 percent to 5,710 won.
Builders were among the winners, with Daewoo Engineering & Construction advancing 2.22 percent to 9,670 won and GS Engineering & Construction jumping 3.26 percent to 38,000 won.
The local currency ended at 1,012.1 won per the greenback, down 0.2 won from Tuesday, extending its losing streak to four consecutive sessions. (Yonhap)
