Stocks end slightly lower ahead of Samsung guidance
Stocks ended slightly lower Monday, as market bellwether Samsung Electronics surrendered ahead of its first-quarter earnings guidance release, analysts said. The Korean won rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 1.69 points, or 0.07 percent, to close at 2,444.16. Trade volume was moderate at 386.6 million shares worth 6.6 trillion won ($6.25 billion), with losers outnumbering gainers 479 to 351.
The local stock market opened higher on optimistic trade data released over the weekend but went south as investors took a wait-and-see stance ahead of the first-quarter earnings season, according to analysts.
“Strong economic data boosted investor sentiment at first but mixed expectations for Samsung’s earnings and woes over tightened regulations dragged down the market,” said Seo Sang-young, an analysts at Kiwoom Securities.
Earlier in the day, Kim Ki-sik, new head of the country’s financial watchdog Financial Supervisory Service, took office. A longtime shareholder activist and former lawmaker, Kim has been a vocal critic of chaebol ownership of financial firms.
Individuals bought a net 74.3 billion won worth of local stocks, while foreign and institutional investors dumped a net 27.1 billion won and 21.8 billion won, respectively. Samsung Electronics, the top market cap here, shed 1.38 percent to close at 2,427,000 won, while SK hynix, a major chipmaker, remained flat at 81,300 won.
KB Financial Group fell 1.98 percent to 59,500 won, and Shinhan Financial Group retreated 0.66 percent to close at 45,400 won.
Retail shares were among the winners amid growing hopes for the end of China’s economic restrictions on Korean firms over a missile defense dispute after a senior Chinese official’s visit here. During a meeting with President Moon Jae-in in Seoul on Friday, Chinese State Councilor Yang Jiechi said there will be “tangible results in the near future.”