South Korean stocks finished 0.31 percent lower on Wednesday as investor sentiment was dented by concerns over weak corporate earnings for the fourth quarter of 2012, analysts said. The local currency gathered ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index slid 6.13 points to 1991.81. Trading volume was heavy at 598 million shares worth 3.95 trillion won (US$3.71 billion) with losers outnumbering gainers 428 to 376.
“Local listed firms are estimated to have remained stagnant in the fourth quarter of last year,” said Han Beom-ho, an analyst at Shinhan Investment Corp. “The appreciation of the won against the U.S. currency also unnerved investors.”
A relatively stronger won damages currency-sensitive exporters by making their goods more expensive overseas.
“Investors also sat on the sidelines due to the upcoming expiration of options slated for this week,” Han added.
Foreigners purchased a net 2.8 billion won worth of local shares, and retail investors bought a net 127 billion won. On the other hand, institutions offloaded 126 billion won.
Samsung Electronics closed flat at 1,500,000 won despite the firm announcing Tuesday that it posted a record operating profit in the October-December period of 2012.
Shipbuilder Hyundai Mipo Dockyard declined for a fourth consecutive trading session, decreasing 0.81 percent to 123,000 won on the firm’s gloomy earnings outlook.
Korea Line, the country’s fourth-largest shipping firm, lost 5.42 percent to 7,510 won after surging by the daily permissible limit earlier this month on reports that local conglomerates have submitted preliminary bids to obtain management control of the shipper. (Yonhap News)
