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Roundup: S.Korean shares fall on earnings concern [Cihan News Agency (Turkey)]
[October 23, 2014]

Roundup: S.Korean shares fall on earnings concern [Cihan News Agency (Turkey)]


(Cihan News Agency (Turkey) Via Acquire Media NewsEdge) SEUL (CIHAN)- South Korean shares ended in negative territory Thursday as Hyundai Motor's earnings announcement boosted concerns over the third-quarter earnings season.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 5. 32 points, or 0.27 percent, to close at 1,931.65. Trading volume stood at 365.65 million shares worth 4.28 trillion won (4.06 billion U.S. dollars).

Hyundai's operating profit tumbled 18 percent in the third quarter from a year earlier to 1.65 trillion won, marking the lowest in about four years. Revenue increased 2.2 percent, but the profit slid on the local currency's ascent to the dollar.



It fueled worries about the third-quarter earnings caused by Samsung Electronics' negative results unveiled earlier this month. Preliminary figure for Samsung's operating profit plunged 60 percent in the third quarter.

Samsung Group and Hyundai Motor Group, parent companies of Samsung Electronics and Hyundai Motor, make up about 35 percent of the country's gross domestic product (GDP). The negative results fueled concerns that the economy is losing momentum.


Hyundai shares jumped 5.9 percent to settle at 171,000 won as the operating profit did not deviate much from the average market estimates of 1.75 trillion won amid solid car sales, helping the KOSPI pare earlier losses.

The No.2 carmaker Kia Motors rose 2.8 percent, and the top auto parts maker Hyundai Mobis soared 4.8 percent.

Memory chip giant SK Hynix fell 1.7 percent despite the announcement of the highest earnings in the company's history. Market bellwether Samsung Electronics lost 0.9 percent, and Naver, the most-used search engine, slid 0.5 percent.

Foreigners reduced stock holdings by 166.9 billion won after buying stocks worth about 50 billion won. Retail and institutional investors bought shares worth 66.4 billion won and 97 billion won respectively.

The South Korean currency finished at 1,056.1 won against the greenback, down 4.7 won from Wednesday's close.

Bond prices ended higher. Yields on the liquid three-year treasury notes declined 1.8 basis points to 2.217 percent, and the return on the benchmark 10-year government bonds lost 3.0 basis points to 2.725 percent. (Cihan/Xinhua) CIHAN (c) 2014 Cihan News Agency. All right reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

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