Shares dip as investors await major earnings reports

Shares closed lower Wednesday ahead of the release of earnings reports by major firms. The won fell in value against the dollar.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,469.69 points on Wednesday, down 0.36 percent, or 8.92 points, from the previous trading session. [YONHAP]

Shares closed lower Wednesday ahead of the release of earnings reports by major firms. The won fell in value against the dollar.

The Kospi fell 8.92 points, or 0.36 percent, to 2,469.69.

Trading volume was low at 381.6 million shares worth 7.17 trillion won ($5.36 billion), with losers far outpacing gainers 608 to 271.

Foreigners sold shares worth 24.1 billion won, while retail investors bought a net 103.8 billion won. Institutions sold a net 81.4 billion won.

Analysts said Seoul shares lost ground as investors sought to cash in profits from recent gains, ahead of a grim outlook for corporate earnings by top-tier players.

Samsung Electronics fell 1.6 percent to 74,000 won, and SK hynix added 0.5 percent to 141,500 won.

Hyundai Engineering & Construction slid 2.03 percent to 31,400 won due to its lower-than-expected earnings for the fourth quarter.

Posco Holdings also dropped 0.74 percent to 400,000 won after its fourth-quarter earnings fell short, while its affiliate Posco Future M fell 1.69 percent to 261,000 won. Posco International rose 3.00 percent to 49,850 won.

LG Display reported on Tuesday its first profit in seven quarters but finished 1.22 percent lower at 13,740 won.

Some shares, such as entertainment-related firms, however, gathered ground on the back of the robust performance of U.S. giants, such as Netflix.

"There has been some positive inflow of buyers in shares related to over-the-top media service firms," said Han Ji-young, an analyst from Kiwoom Securities.

Contentree Joongang, an entertainment firm, rose 2.36 percent to 13,010 won and Hybe gained 1.37 percent to 222,000 won.

Chemical shares also closed higher, with LG Chem advancing 2.43 percent to 400,500 won and oil refiner SK Innovation gaining 2.09 percent to 112,100 won. Amorepacific shed 0.29 percent to 138,500 won.

The local currency ended at 1,333.7 won against the dollar, up 3.6 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 1.6 points to 3.302 percent, and the return on the benchmark U.S. 10-year government bonds gained 3.2 points to 4.136 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]