South Korean shares ended lower on Wednesday, hit by foreign selling of Samsung Electronics Co Ltd after weaker earnings from US tech bellwether Cisco Systems, and also a big fall in Kookmin Bank.
Investors were also cautious about currency potential fluctuations ahead of a meeting of the Group of Seven (G7) finance ministers at the weekend.
"Foreigners continued selling and there is a high level of uncertainty ahead of the weekend G7 meeting," said Jeon Jeong-woo, fund manager at Daehan Investment Trust Management, referring to possible pressure on Asian countries at the weekend to allow their currencies to appreciate.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.52 percent to 835.50 point.
"Caution over the strong won and delayed domestic economic recovery has kept the market from rebounding," said Park Hyoung-ryul, a fund manger at KTB Asset Management.
Kookmin Bank shares dropped 4.03 percent to 44,000 won after several brokerage houses issued higher 2003 net loss forecasts for the bank ahead of its earnings announcement due next Monday.
"The stock was lifted late last year by strong optimism over a domestic demand revival this year, which should boost banks' earnings. But Kookmin Bank's first-quarter earnings are likely to disappoint the earlier hopes," said Park.
Shares of Samsung Electronics lost 1.55 percent to 509,000 won.
"As the January effect was gone and the fourth-quarter earnings season is coming to an end, investors are taking a breather and pocketing profits," said Jeon at Daehan Investment.
Bucking the trend, POSCO, the world's fourth-biggest steel maker, rose 0.32 percent to 158,000 won as investors cheered the company's strong January results.
POSCO said on Tuesday its operating profit in January jumped nearly 60 percent from a year earlier to 441 billion won, while sales rose more than 30 percent.
Shares of KT Corp, the country's top fixed-line and broadband telco, fell 0.89 percent to 44,500 won after it reported quarterly net profit tumbled 88 percent due to falling voice traffic and slower growth in high-speed Internet customers.
"KT has no fresh growth momentum, unless the company merges with a mobile operator and produce hybrid products," Choi Yong-kyu, a fund manager at KEB Commerz Investment Trust Management Co.
Trade volume was 372 million shares, compared with 462 million on Tuesday. Turnover totalled at 2.39 trillion won, down from 2.65 trillion won. Gainers topped losers 399 to 361 with 65 stocks unchanged.
The March KOSPI 200 futures index lost 0.35 point to 109.60 and the underlying KOSPI 200 spot index fell 0.65 point to 108.56.
The junior Kosdaq ended down 0.08 percent at 437.45.
Foreign investors sold a net 50.2 billion won in shares, while local institutional investors bought a net 48.8 billion won.
Retail investors sold a net 16.5 billion won worth of shares.
Comments
Comments are closed.