SEOUL: South Korean stocks closed lower Friday as investor sentiment was dented by prolonged uncertainty over a U.S. interest rate hike and China’s economic slowdown, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.15 percent, or 3.06 points, to 2,010.23. Trading volume was moderate at 329.75 million shares worth 4.65 trillion won (US$3.98 billion), with losers outpacing gainers 422 to 380.
Analysts said the stock market was weighed down by concerns over the U.S. rate policy and signs of a slowing Chinese economy. A weak earnings outlook for major South Korean companies also put a damper on investor sentiment.
“The most fundamental cause is the weakening competitiveness of the top listed firms,” said Ryu Yong-seok, an analyst at Hyundai Securities. “Although their shares are undervalued, investors are not buying them out of concern over their future performances.”
Foreigners sold more shares than they bought at 33.76 billion won, while retail investors scooped up a net 150.6 billion won. Institutions sold a net 168.2 billion won.
Samsung C&T fell 5.25 percent to 52,300 won, and Cheil Industries also slid 4.66 percent to 153,500 won. Samsung C&T, the construction unit of Samsung Group, said Friday it has received requests to buy back their shares worth 670 billion won from shareholders opposing their merger.
Carmakers closed lower, with Hyundai Motor moving down 1.08 percent to 138,000 won and Kia Motors losing 1.3 percent to 41,900 won. Top auto parts maker Hyundai Mobis shed 0.24 percent to 206,000 won.
