SEOUL: South Korean stocks traded 0.6 percent lower late Friday morning as slumping shipbuilders weighed down on the overall market ahead of a tough earnings season for them, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 12.44 points to 2,075.45 as of 11:20 a.m.
Shipbuilders tumbled as the investor sentiment froze on concerns over their flagging second-quarter earnings from feeble global demands.
Samsung Heavy Industries tumbled 12.39 percent on rising speculation that it was heading towards heavy operating losses in the upcoming quarterly earnings season.
Daewoo Shipbuilding & Marine Engineering, the world’s second-largest shipbuilder, fell for a fourth consecutive day with 2.08 percent loss on concerns that it may brace for massive loses on the book value. No. 1 Hyundai Heavy Industries also dipped 5.86 percent.
Cheil Industries edged up 0.77 percent after its shareholders earlier in the day voted on a proposed merger with its sister company Samsung C&T, a move aimed at clearing the way for a third-generation leadership transfer at South Korea’s most powerful conglomerate
Samsung C&T increased 0.87 percent while its shareholders separately were holding a vote on the proposal, with the results slated for release later in the day. U.S. hedge fund Elliot Associate, its third-largest single shareholder, has strongly opposed the merger, claiming the takeover disadvantages the interests of minor shareholders.
The local currency was changing hands at 1,146.45 won against the dollar in Seoul as of 11:20 a.m., up 2.75 won from Thursday’s close.
