Shares edge down ahead of Samsung’s earnings guidance

South Korean stocks closed 0.23 percent lower on Monday as investor sentiment was curbed by a gloomy prospect for Samsung Electronics’ second-quarter earnings guidance due the next day, analysts said. The local currency lost ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index lost 4.54 points to 2,005.12. Trading volume was moderate at 224.1 million shares worth 2.98 trillion won ($2.95 billion), with losers outpacing winners 460 to 358.

Analysts said investors stayed very cautious in betting on the verge of corporate earnings season, with the announcement of market bellwether Samsung Electronics’ second-quarter guidance scheduled on Tuesday.

“Samsung Electronics is expected to post worse-than-expected results for its second-quarter performance. This bad news weighed heavily on the market,” said researcher Kwak Byung-ryul from Eugene Investment & Securities Co.

“The more important thing is that Samsung’s third- and fourth-quarter earnings would show no improvement. So, investors want to see the result tomorrow before buying more stocks.”

Foreign investors extended their buying streak to eight sessions, scooping up a net 186.5 billion won worth of local shares.

Most shares closed bearish, with Samsung Electronics tumbling 1.07 percent to finish at 1,292,000 won.

Shipbuilders went south, with industry leader Hyundai Heavy Industries sliding 1.68 percent to 176,000 won and Daewoo Shipbuilding & Marine Engineering sinking 4.49 percent to 25,550 won.

SK Telecom, the country’s biggest mobile operator, dropped 0.4 percent to 248,000 won, and runner-up KT retreated 0.63 percent to 31,400 won. (Yonhap)