Shares slip on earnings woes

South Korean stocks closed 0.76 percent lower as bleak corporate earnings outlook of local big-name companies weighed heavily on the market, analysts said. The local currency gained against the U.S. dollar.

The benchmark Korea Composite Stock Price Index lost 14.78 points to 1,926.81. Trading volume was moderate at 528.4 million shares worth 4.11 trillion won ($3.72 billion), with decliners outnumbering gainers 435 to 377.

“Investors already knew that companies performed bad in the third quarter. But they are still worried about slower global growth hitting corporate sales,” said Um Tae-woong, an analyst from Bookook Securities Co. “The poor third-quarter outcomes can be repeated in the final quarter.”

Investors also remain cautious before a key meeting of the U.S. Federal Reserve to watch whether the U.S central bank will decide detailed supports for the economic stimulus announced earlier, noted Um. (Yonhap News)

“There is still no good news to remove the lingering uncertainties in the global economy. The main index will continue to move in a tight range after the U.S. presidential election next month,” said Um.

Market heavyweights led the decline. Top steelmaker POSCO slumped 2.11 percent to 348,500 after Standard & Poor’s cut the company’s credit ratings due to weak steel demand. Korea Zinc, the world’s second-largest zinc smelter, dipped 0.99 percent to 450,000 won.

Shipbuilders were among the biggest losers, with industry leader Hyundai Heavy Industries tumbling 3.29 percent to 235,500 won and Daewoo Shipbuilding & Marine Engineering falling 3.29 percent to 23,550 won.

Autos also closed in negative territory. Top carmaker Hyundai Motor slid 1.33 percent to 223,000 won and its smaller affiliate Kia Motors lost 1.36 percent to 65,300 won.

Techs finished mixed ahead of the release of Apple’s new iPad Mini. Samsung Electronics, the world’s biggest smartphone maker, lost 0.15 percent to 1,313,000 won, but LG Display, one of the biggest flat panel suppliers of Apple, gained 1.86 percent to 30,500 won.

The local currency closed at 1,103.1 won to the greenback, up 1.1 won from Monday’s close, on rising hopes for Spain’s bailout and eased eurozone debt woes, dealers said. (Yonhap News)