South Korean stocks finished 0.49 percent lower on Wednesday as investor sentiment was dented by outlook cuts on U.S. banks and concerns about Chinese manufacturing data, analysts said. The local currency climbed against the U.S. dollar.
Snapping a two-day gaining streak, the benchmark Korea Composite Stock Price Index fell 9.01 points to 1,847.51.
Trading volume was moderate at 329 million shares worth 6.41 trillion won ($5.61 billion) with loser leading gainers 456 to 375.
“It is not a big decline considering that the KOSPI gained significant ground in the last two sessions,” said Lee Sun-yup, an analyst at Shinhan Investment Corp. “China-related shares led the broader decline as investors worried about China’s purchasing managers’ index.”
The monthly PMI, set to be released on Thursday, is likely to show weak manufacturing activity in China, South Korea’s major trade partner, reports said.
The KOSPI got off to a weak start following reports that Standard & Poor’s downgraded its long-term outlooks for major banks, including Bank of America, Goldman Sachs Group and Citibank.
Builders and machinery makers lost ground with Doosan Infracore, the leading construction equipment maker, down 3.66 percent to 18,450 won. Hyundai Engineering and Construction fell 1.38 percent to 64,500 won.
State power monopoly Korea Electric Power Corp. slumped 3.28 percent to 25,050 won. The company said it will hike electricity prices for a second time this year.
But Samsung C&T, a trading and construction unit of Samsung Group, rose 0.61 percent to 66,100 won after announcing that it has taken over a major stake in Parallel Petroleum LLC, a U.S. energy firm.
LG Electronics added 1.52 percent to 73,300 won after announcing an annual management shakeup.
The local currency closed at 1,143 won to the greenback, up 2.4 won from Tuesday’s close, as offshore investors snapped up Seoul stocks, dealers said.
(Yonhap News)
