[THE INVESTOR] South Korean shares ended lower on July 5 as institutions and foreign investors sought to lock in early gains. The local currency continued to lose ground against the US greenback.
The benchmark Korea Composite Stock Price Index shed 5.45 points, or 0.27 percent, to 1,989.85. Trading volume was slim at 216 million shares, worth 1.77 trillion won (US$1.53 billion), with losers outnumbering gainers 497 to 274.
The decline marked the end of a six-day bullish run that helped completely recover from earlier losses sparked by Britain‘s vote to leave the European Union two weeks ago.
Foreigners and institutions were net sellers, each offloading 54.82 billion won and 72.56 billion won worth of local shares, respectively. Retail investors scooped up a net 91.54 billion won.
“The drop appears to be a technical fall as the index has been on a rapid rebound,” said Bookook Securities analyst Kim Sung-hwan.
“It may take some time, but the index may breach the 2,000 mark, especially if Samsung Electronics’ Q2 earnings guidance helps boost investor sentiment.”
Market consensus for Samsung’s second quarter operating profit stands at 7.32 trillion won, up 26.2 percent from three months earlier. The earnings guidance is due on July 7.
Most large caps ended in negative terrain, while market bellwether Samsung Electronics added 0.20 percent to 1,469,000 won.
Top automaker Hyundai Motor lost 1.46 percent to 135,000 won, with its smaller affiliate Kia Motors shedding 0.70 percent to 42,650 won.
Global chipmaker SK hynix plunged 2.75 percent to 31,850 won, while top life insurer Samsung Life Insurance retreated 2.53 percent to 96,300 won.
The South Korean won closed at 1,155.40 won against the US dollar, down 8.50 won from previous session’s close.
(
theinvestor@heraldcorp.com)
