Seoul shares fall 1.24 pct on Q1 earnings woe

South Korean stocks closed 1.24 percent lower Thursday due to rising concerns over the listed firms' earnings for the first quarter, analysts said. The local currency fell against the U.S. dollar.
   
The benchmark Korea Composite Stock Price Index (KOSPI) shed 23.78 points to finish at 1900.06. Trading volume was moderate at 336.9 million shares worth 4.2 trillion won (US$3.75 billion) with losers outnumbering gainers 464 to 339.
  
"Investors sat on the sidelines as the first-quarter earnings of listed firms remained stagnant amid the sluggish recovery of the local economy," said Kang Hyun-gie, a researcher at I'M Investment & Securities Co.
  
Samsung Engineering, one of South Korea's largest industrial plant builders, said Tuesday that it swung to a net loss in the first three months of the year due to a loss in projects in the United States and Saudi Arabia.
   
Net loss reached 180.4 billion won in the three months through March 31, a sharp decline from a profit of 144.4 billion won a year earlier, the Seoul-based company said in a regulatory filing.
  
"Although the KOSPI is expected to continue to hover above the 1,900 mark, it will remain flat due to the lack of growth momentum at home and abroad," Kang added.
   
Foreigners offloaded a net 233.4 billion won and institutions sold a net 38.1 billion won. In contrast, retailers scooped up a net 261.8 billion won.
   
Tech blue chips finished bearish, with market behemoth Samsung Electronics falling 2.31 percent to 1,483,000 won and top chipmaker SK hynix losing 2.96 percent to 27,900 won. Leading flat panel manufacturer LG Display shed 4.79 percent to 29,800 won.
  
Construction firms lost ground, with GS Engineering & Construction falling 3.14 percent to 30,800 won and Hyundai Engineering & Construction moving down 0.34 percent to 58,000 won.
   
Carmakers closed lower, with No. 1 player Hyundai Motor decreasing 2.08 percent to 188,500 won, and its affiliate Kia Motors losing 1.92 percent to 269,000 won. Leading shipbuilder Hyundai Heavy Industries shed 1.04 percent to 191,000 won.
   
Mobile carriers also traded lower, with SK Telecom moving down 1.05 percent to 188,500 won, and No. 2 player KT losing 0.96 percent to 36,050 won. LG Uplus lost 3.53 percent to 9,030 won.
   
In contrast, energy firms gathered ground, with Korea Gas Corp. advancing 0.56 percent to 71,200 won. KT&G, South Korea's top tobacco manufacturer, gained 1.04 percent to 78,000 won.
   
The local currency ended at 1,124.00 won against the greenback, down 5.50 won from Wednesday's close, due mainly to the rising concerns over the economic slowdown, dealers said. (Yonhap News)