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Seoul: Stocks skid to 2-week low as techs take hit, won slips
[SEOUL] South Korean shares slid to a two-week low early on Friday, on track for a weekly loss, as foreign investors locked in gains, especially in the tech sector and disappointing earnings took a toll on some stocks.
The Korea Composite Stock Price Index (Kospi) was down 1.2 per cent at 2,414.14 points as of 0256 GMT after plumbing its lowest intraday level since July 13.
Foreign investors are selling to take profits after reviewing the corporate earnings guidance of major companies which comprise a large portion of the market, said Lee Jae-Man, a stock analyst at Hana Financial Investment Co Ltd.
Offshore investors were poised to be net sellers for four consecutive sessions, offloading a net 300.7 billion won (S$365.53 million) worth of Kospi shares near mid-session, which pressured the index.
The electric and electronics sub-index fell more than 3 per cent, while tech giant Samsung Electronics was down 3.6 per cent despite strong second quarter earnings and SK Hynix fell 4.5 per cent.
Hyundai Development and LG Innoteck dropped as much as 7.3 per cent and 6.8 per cent, respectively, after both posted weaker-than-expected earnings for the April-June period.
Messenger app Kakao bucked the trend and rose to its 18-month intraday high on the popularity of its bank service launched on Thursday.
Decliners outnumbered advancers 627 to 171.
The South Korean won edged down after hitting four-month highs on Thursday. The currency stood at 1,117.8 against the US dollar, down 0.5 per cent from Thursday's close of 1,112.8.
September futures on three-year treasury bonds lost 0.01 point to 109.36.