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Seoul shares tad down on institutional selling

By KH디지털2
Published : March 30, 2017 - 16:03

South Korean stocks closed slightly lower Thursday, as institutional investors opted to cash in profits from the recent rally amid a lack of fresh momentum in the market, analysts said. The local currency fell against the US dollar.

After starting up some 0.3 percent at the opening bell, the benchmark Korea Composite Stock Price Index soon turned lower, closing down 2.34 points, or 0.11 percent at 2,164.64.



Trading volume was moderate at 633.5 million shares worth 4.31 trillion won ($3.84 billion), with decliners outpacing gainers 422 to 360. 

Analysts said the institutions-led net selling dragged down shares, while there were no fresh leads to whet investors' appetite for risky assets.

"Investors are taking a breather from the KOSPI's 3-month-high rally, with foreigners scaling back their net purchases, as they await the earnings results," said Lee Joon-hee, an analyst at NH Investment & Securities Co.

Local companies are scheduled to announce their first-quarter earnings next month, starting with tech giant Samsung Electronics Co. that will release its earnings preview April 7.

Lee said the direction of the main index will hinge on the companies' first-quarter performances, which are predicted to have improved overall on better-than-expected outbound shipments.

Airlines and foodmakers led the decline, with top player Korean Air Lines slipping 3 percent to 30,800 won and Lotte Confectionery shedding 2.51 percent to 194,000 won.

Samsung BioLogics, a biopharmaceutical affiliate of Samsung C&T Corp., plunged 3.54 percent to 177,000 won following media reports that it is facing an audit review by the local financial watchdog over an "irregularity" in its accounting.

In contrast, auto and telecom companies finished bullish. Top automaker Hyundai Motor climbed 1.6 percent to 158,500 won, with No. 1 mobile operator SK Telecom adding 1.19 percent to 255,500 won.

Top-cap Samsung Electronics gained 0.48 percent to 2,099,000 won, after it showcased its latest high-end smartphone, the Galaxy S8, in the United States early Thursday (local time).

The local currency ended at 1,117.20 won against the greenback, down 3.0 won from Wednesday's close. (Yonhap)


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