SEOUL, July 22 (Reuters) – Seoul shares fell on Thursday as blue chip technology stocks such as Samsung Electronics (005930.KS) slid amid mounting concerns a slowing global recovery may lead to a slump in sales.
The Korea Composite Stock Price Index (KOSPI) closed down 0.76 percent at 1,735.53 points. Domestic institutions were sellers of a net billion won worth of stocks amid high demand for equity fund redemptions.
Institutional investors were sellers of a net 176 billion won ($146.2 million) worth of stocks.
Foreign and domestic individual investors were buyers of combined a net 71 billion won worth.
“U.S. Federal Reserve Chairman Ben Bernanke’s comments enflamed uncertainty,” said Hong Soon-pyo, a market analyst at Daishin Securities. “Technology issues in particular are under heavier pressure as they have outperformed.”
Bernanke said the U.S. economic outlook was “unusually uncertain.” [ID:nN21165172]
Hynix shares have risen 37.6 percent this year. Samsung Electronics shares have gained 18 percent.
Hynix Semiconductor Inc (000660.KS) fell 4.2 percent after the company said NAND Flash memory chip prices were expected to be weak in the third quarter. [ID:nTOE66K08P]
“Investors are growing worried that Hynix’s third-quarter earnings momentum will slow. Chip pricing is seen weak, while shipment growth is not impressive,” said Han Seung-hoon, an analyst at Korea Investment & Securities.
Samsung Electronics (005930.KS), the world’s No.1 memory chip maker, shed 1 percent.
Shares in LG Display Co (034220.KS) declined 3 percent on ahead of its second-quarter earnings results, amid mounting concern over its second-half outlook, analysts said.
The world’s No. 2 flat panel maker on Thursday is expected to report that second-quarter net profit more than tripled from a year earlier to 744 billion won ($618.2 million), according to analysts polled by Thomson Reuters I/B/E/S.
“The second-half outlook is not so bright. Flat panel prices will probably continue to weaken,” said Hwang Joon-ho, an analyst at Daewoo Securities.
Hyundai Motor (005380.KS), South Korea’s top automaker, shed 2.6 percent.
But gains in shipbuilders gave market support as they rose on news of new orders and strong results.
Hyundai Heavy Industries Co (009540.KS) climbed 4.1 percent after the world’s No.1 shipbuilder said after trading ended on Wednesday that second-quarter net profit more than doubled to 910.5 billion won ($756.5 million). [ID:nTOE66I02R]
Daewoo Shipbuilding & Marine Engineering Co (042660.KS) gained 1.8 percent after saying it had won ship orders worth $1.2 billion from Neptune Orient Lines (NEPS.SI).
Korea Electric Power Corp (KEPCO) (015760.KS) rose 0.6 percent after the state utility said late on Wednesday that it would buy a 20 percent stake in Indonesia’s Bayan Resources PT (BYAN.JK) to secure more coal supplies. [ID:nSUL000115]
“This deal will boost KEPCO’s resource self-reliance, and help it generate electricity more cost effectively,” said Yoo Deok-sang, an analyst at NH Investment & Securities.