Shares down on EU disappointment

South Korean stocks closed 0.12 percent lower on Monday as investors were disheartened by a recent European Union summit and downbeat earnings from U.S. firms, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index slipped 2.25 points to 1,941.59 in the first 15 minutes of trading. Trading volume was moderate at 453.8 million shares worth 3.8 trillion won ($3.4 billion), with decliners outnumbering gainers 444 to 369.

“The EU policy event didn’t live up to investor expectations. Moreover, a recent spate of downbeat U.S. earnings blocked the KOSPI from gaining,” said Lim Dong-lak, an analyst at Hanyang Securities Co.

“However, there are views that recent falls were too steep and market situations will start to improve,” said Lim, adding there may be small gains despite the downward pressure.

Autos led the decline with top automaker Hyundai Motor falling 0.88 percent to 226,000 won and its auto-parts affiliate Hyundai Mobis losing 1.33 percent to 297,500 won. The auto giant is set to release its earnings on Thursday.

Chemicals and energy refiners also dragged on the KOSPI, with industry leader LG Chem slumping 2.86 percent to 323,000 won and SK Innovation falling 1.52 percent to 162,500 won.

In contrast, some market blue chips outperformed the index.

Tech heavyweight Samsung Electronics, which is slated to release its third-quarter earnings on Friday, rose 1 percent to 1,315,000 won.

Defensive shares also closed higher, with LG Household & Health Care adding 2.83 percent to 653,000 won and leading non-life insurer Samsung Fire & Marine Insurance gaining 3.79 percent to 233,000 won. (Yonhap News)