Seoul stocks fall as foreign profit-taking, Samsung earnings caution weigh on investor sentiment
Summary
Korean stocks fell in Seoul on Wednesday as foreign investors sold shares and investors turned cautious ahead of Samsung Electronics’ preliminary third-quarter earnings report. The KOSPI closed at 6,803.90, down 1.98 percent, while the Kosdaq fell 2.34 percent to 898.43. Samsung Electronics and SK hynix declined, and the won strengthened to 1,340.4 won against the U.S. dollar.
Key Facts
- Foreign investors and institutions were net sellers of 2.61 trillion won and 672.6 billion won, respectively, while retail investors bought a net 2.5608 trillion won.
- Samsung Electronics closed at 268,500 won, down 1.29 percent, after giving up an early gain of more than 2 percent.
- SK hynix fell 2.82 percent to 1.72 million won.
- The KOSPI opened at 6,864.25, down 1.11 percent, and the Kosdaq opened at 917.45, down 0.27 percent.
- The won strengthened 3.2 won against the U.S. dollar to close at 1,340.4 won.
A stock ticker at Hana Bank's headquarters in Seoul shows the benchmark KOSPI closing at 6,803.9, down 1.98 percent from the previous close, Wednesday. Yonhap
Korean stocks fell Wednesday as foreign investors offloaded shares across the board and the market turned cautious ahead of Samsung Electronics’ preliminary third-quarter earnings report, in contrast to Wall Street’s record-setting session overnight.
The benchmark KOSPI opened at 6,864.25, down 1.11 percent from the previous close, according to the Korea Exchange. After briefly moving higher early in the session, the main index turned lower and remained in negative territory before closing at 6,803.90, down 1.98 percent.
Foreign investors and institutions were net sellers of 2.61 trillion won ($1.95 billion) and 672.6 billion won, respectively, while retail investors purchased a net 2.5608 trillion won.
The gains on Wall Street overnight failed to carry over to the Korean stock market. The three major U.S. indexes rose on steadier oil prices and expectations for a strong third-quarter earnings season among blue-chip, industry-leading companies.
Both the S&P 500 and Nasdaq Composite closed at record highs, with each of the indexes ending at 7,818.93 and 27,599.89.
Analysts attributed the KOSPI’s recent weakness in part to a lack of fresh liquidity to drive the market higher.
“Liquidity in the domestic market has dried up compared with the first half of the year. In this environment, it is difficult to expect a sharp recovery in large-cap stocks,” said Kim Dae-jun, an analyst at Korea Investment & Securities.
Shares of the country’s two semiconductor giants also weighed on the KOSPI. SK hynix fell 2.82 percent to 1.72 million won. Samsung Electronics, which had risen more than 2 percent early in the session, gave up all of its gains and turned lower, closing at 268,500 won, down 1.29 percent.
The pullback came despite positive earnings expectations, as investors grew more cautious over the potential impact of the recent strengthening of the won against the dollar on company profits.
The secondary bourse Kosdaq remained in negative territory throughout the session after opening 0.27 percent lower at 917.45. It continued to slide without a meaningful rebound, eventually falling below the 900 level to close at 898.43, down 2.34 percent.
In the Seoul foreign exchange market, the won strengthened 3.2 won against the U.S. dollar to close at 1,340.4 won.
Explore More
- Q.
- Q.
- Q.