South Korean stocks finished 0.66 percent lower Tuesday as rising concerns over a weak corporate earnings outlook dented investor sentiment, analysts said. The local currency gathered ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index dropped 13.30 points to 1,997.94. Trading volume was moderate at 489.3 million shares worth 3.91 trillion won ($3.67 billion), with decliners outnumbering gainers 427 to 369.
“Although Samsung Electronics boasted all-time high quarterly earnings, the local stock market moved down as such results were already priced in, while investors also sought for profit-taking,” said Kim Chul-joong, an analyst at Korea Investment & Securities Co.
Samsung Electronics fell 1.31 percent to close at 1,500,000 won, after the firm estimated to have posted a record operating profit of 8.8 trillion won in the fourth quarter of 2012, soaring 88.8 percent from a revised profit of 4.66 trillion won a year earlier.
“While most of the listed firms are feared to report weak performances for the fourth quarter, investors are also taking a wait-and-see approach on the central bank’s stance on the key interest rate,” Kim added.
South Korea’s central bank will set the country’s key policy rate for January on Friday, while a lower rate can curb the appreciation of the local currency against the greenbacks, leading to exporters’ gains.
Foreigners purchased a net 50.2 billion won worth of local shares, extending their buying streak to three straight sessions.
Retail investors bought a net 78 billion won, while institutions offloaded 117.7 billion won. (Yonhap News)
