Seoul stocks close 1.12 pct lower on exporter losses

By Park Bo-ram
SEOUL, Oct. 16 (Yonhap) -- South Korean stocks finished 1.12 percent lower Friday
as a strengthening local currency hurt exporting companies, analysts said. The
South Korean won closed lower against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) declined 18.63 points to
end at 1,640.36, reversing two-day gains. Volume was light at 365.4 million
shares worth 5.7 trillion won (US$4.9 billion) with losers outnumbering gainers
506 to 286.
"The local currency, hovering around the 1,150-won level against the U.S. dollar,
prompted sell-offs of exporting firms by institutional investors," said Sim
Jae-yup, an analyst at Meritz Securities. "Foreign investors, however, remained
net buyers as they saw local shares are still relatively cheap".
Tech companies and automakers, two key exporting sectors, led the broader index
drop as a stronger won was feared to erode their profitability down the road.
LG Display, the world's second-largest liquid crystal display producer, plunged
4.21 percent to end at 31,850 won a day after the firm reported
worse-than-estimated earnings for the third quarter.
Computer memory chip giant Samsung Electronics also slid 3.74 percent to 746,000
won with smaller chip rival Hynix Semiconductor also slumping 3.65 percent to
settle at 19,800 won.
Top carmaker Hyundai Motor plummeted 4.86 percent to 99,900 won and Hyundai's
affiliate Kia Motors dropped 4.66 percent to 16,350 won.
Banking shares, however, gathered ground as solid third-quarter earnings by U.S.
financial peers boosted optimism for the sector.
Leading financial holding firm Shinhan Financial Group rose 1.67 percent to
48,800 won and KB Financial Group, which controls top lender Kookmin Bank, also
gained 0.33 percent to end at 61,200 won.
The local currency ended at 1,164.5 won to the U.S. dollar, down 9.4 won from
Thursday's close. The won recoiled from a nearly 13-month high logged Thursday on
speculation the government may intervene to stem the currency's upswings.
pbr@yna.co.kr
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