South Korean stocks edged down 0.49 percent Wednesday as investors took profits following a bullish run on the previous session, analysts said. The local currency rose against the U.S. dollar.
The benchmark KOSPI lost 9.19 points to 1,866.22. Trading volume was heavy at 488 million shares worth 4.7 trillion won ($4.1 billion), with losers leading gainers 430 to 395.
“Some investors offloaded their shares to take profits as the KOSPI jumped nearly 50 points on the previous day on the back of better-than-expected economic data from the U.S.,” said analyst Lim Dong-rak from Hanyang Securities Co.
“They also took a watch-and-see stance to see determine Europe will deal with the ailing Italian debts and possible downgrades of some eurozone countries.”
Lim also said the investors are reluctant to move ahead of the fourth-quarter earnings season starting from Friday with the announcement of tech giant Samsung Electronics.
Shares closed mixed.
World’s biggest chipmaker Samsung Electronics slipped 2.25 percent to 1,080,000 won, after hitting an all-time high of 1,105,000 won on Tuesday. Its smaller rival LG Electronics sank 3.49 percent to 74,700 won.
Banks were among the biggest losers, with the state-run Industrial Bank of Korea slumping 6.15 percent to 11,450 won and Hana Financial Group losing 2.31 percent to close at 35,900 won.
Shipbuilders, however, gained ground as market leader Hyundai Heavy Industries rose 1.83 percent to 278,500 won and Hanjin Heavy Industries advanced 1.77 percent to 20,100 won.
Carmakers also closed higher, with Hyundai Motor Co. adding 0.9 percent to 223,500 won and its smaller affiliate Kia Motors Corp. up 0.88 percent to close at 68,700 won.
The local currency ended at 1,148.6 won against the greenback, up 2.2 won from Tuesday’s close, following the strong recovery signs of the U.S. economy, dealers said.
(Yonhap News)
