South Korean stocks inched down 0.05 percent Monday as investors dumped large cap shares due to a pessimistic outlook on fourth-quarter earnings, analysts said.
The benchmark Korea Composite Stock Price Index shed 0.99 points to finish at 1,986.86. Trading volume was moderate at 440.75 million shares worth 3.76 trillion won ($3.54 billion) with gainers outpacing decliners 459 to 352.
“The mood is quite positive in recent times. China’s fourth-quarter growth met market expectations and U.S. policymakers agreed on budget deals,” said Han Beom-ho, a senior analyst at Shinhan Investment Corp. “But, investors are a little concerned about earnings of big-name companies due to a strengthening local currency.”
Samsung Electronics and Hyundai Motor are set to release their fourth-quarter earnings later this week.
He said Vanguard Group’s recent move to switch to a benchmark index which excludes Seoul shares pulled down some shares including Samsung Electronics.
Stocks closed in mixed territory, with techs and autos bearish and banks and shipbuilders bullish.
Tech giant Samsung Electronics slid 1.76 percent to 1,454,000 won and LG Display, one of the biggest flat screen suppliers for Apple, lost 1.04 percent to 28,500 won.
Carmakers continued their weak trend as Japan’s central bank is expected to conduct another round of monetary easing. Industry leader Hyundai Motor dipped 1.41 percent to 210,500 won and its smaller affiliate Kia Motors fell 1.48 percent to 53,400 won.
However, bank shares finished higher on the easing of the fiscal crisis in the United States, with Woori Finance Holdings, the biggest finance group by asset, gaining 2.02 percent to 12,650 won. (Yonhap News)
