South Korean shares slipped for a fourth straight day to a two-month closing low on Tuesday, with banking and other financial shares succumbing to profit-taking amid weak expectations for earnings. Political woes in Italy and Spain dampened sentiment for many risk assets this week but Seoul stocks have also been weighed down this year by strength in the won and a slew of corporate earnings that have come in below forecasts.
The Korea Composite Stock Price Index (KOSPI) finished 0.8 percent lower at 1,938.18 points, bringing its year-to-date decline to 2.9 percent. "If you factor in renewed political uncertainty in Europe, this could see the KOSPI finally align with global markets, in that they would both be declining," said Hong Soon-pyo, an analyst at BS Investment & Securities. Financial stocks led losses, with the sector sub-indexes for banks and securities down 2.1 percent and 1.7 percent respectively.
Stocks in exporters such as tech and shipbuilding declined, with chipmaker SK Hynix shedding 2.5 percent and panel maker LG Display losing 1.78 percent. Decliners outnumbered gainers, 604 to 217. Local institutions sold a net 132 billion won ($121.7 million) worth of KOSPI shares, weighing on the main board. The KOSPI 200 benchmark of core stocks closed down 0.8 percent, while the junior KOSDAQ edged 0.6 percent lower.
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