Shares slip on economy, earnings woes

South Korean stocks fell 0.67 percent on Wednesday as concerns about the economic slowdown and weak corporate earnings continued to weigh down investor sentiment, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index declined 12.85 points to 1,913.96, marking the fourth straight session of losses. Trading volume was moderate at 558.4 billion shares worth 5.58 trillion won ($5.06 billion) with losers outpacing gainers 491 to 328.

“Without clear upward momentum and buyers, investors took a breather throughout the session, weighed down by growth concerns and lackluster corporate earnings,” said Kim Hyoung-ryoul, an analyst at Kyobo Securities Co.

Kim said investors will await results of a rate-setting meeting being held by the Federal Reserve and Fed Chairman Ben Bernanke's assessment of the U.S. economy.

The KOSPI fell as much as 1.31 percent at one point in the morning session, but trimmed some losses after the index gauging China's manufacturing activity showed a moderate fall for October.

Foreign investors unloaded a net 327.9 billion won worth of local stocks, marking the fourth straight session of a selling spree.

South Korean companies have unveiled their third-quarter performances which clearly showed bitter impacts of the protracted eurozone debt crisis and China's slowdown on corporate profitability.

Carmakers took a hit from concerns about the economic slowdown and the local currency's increasing strength. Top automaker Hyundai Motor shed 2.24 percent to 218,000 won and its affiliate Kia Motors declined 4.44 percent to 62,400 won.

Top steelmaker POSCO fell 1.43 percent to 343,500 won, hit by its weak earnings. It said Tuesday that its operating profit dropped 17.6 percent to 1.06 trillion won in the third quarter as China's slowdown curtailed demand for steel products. (Yonhap News)