South Korean stocks finished 0.58 percent down Thursday as the strengthening won weighed heavily on the local big-name exporters, analysts said. The local currency gained ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index lost 11.69 points to 2019.41. Trading volume was moderate at 484.5 million shares worth 5.99 trillion won ($5.64 billion) with gainers outnumbering losers 440 to 375.
“Large-cap exporters such as Hyundai Motor are directly affected by the weakening Japanese yen and strengthening won. Their fourth-quarter earnings will likely fail to meet the market expectation,” said Han Beom-ho, an analyst from Shinhan Investment Corp.
“Investors sat on the sidelines before the earning season starts later this month,” Han added that there is still no clear signs of recovery in the world economy to boost investor confidence and drive up the main index, despite the settlement of the U.S. fiscal cliff issue.
Shares closed in mixed territory. Market bellwether Samsung Electronics slid 2.09 percent to 1,543,000 won after shooting up 3.55 percent to an all-time high of 1,576,000 won in the previous session.
Carmakers were bearish on growing anxiety over their price competitiveness against Japanese rivals due to the strengthening won. The country’s biggest automaker Hyundai Motor tumbled 4.63 percent to 206,000 won and its smaller affiliate Kia Motors lost 3.02 percent to 54,600 won. (Yonhap News)
