S. Korean stock market closes down on waning investor expectation

South Korean shares continued to close lower Friday with the end of earnings season approaching, local analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) dropped 11.55 points, or 0.65 percent, to close at 1,759.33, according to the bourse operator Korea Exchange (KRX).

With the earnings announcements of major market giants, investor sentiment grew weaker as no major favorable factors can be found in the market for the time being, analysts said.

While foreigners made a strong net buy, institutions and retailers ended trading as net sellers.

Most shares made a downturn, with the steel sector seeing the greatest fall of 3.22 percent and securities shares shedding 2.18 percent.

Among large market cap shares, shares of Samsung Electronics slid 2.06 percent despite its stellar Q2 earnings report.

The junior bourse KOSDAQ also declined 1.11 points, or 0.23 percent, to close at 481.45.

The derivatives moved in line with spot trading, with the KOSPI 200 Futures market losing 1.91 points, or 0.83 percent, to 229.25, according to the bourse operator.

Meanwhile, the local currency regained strength against one U.S. dollar, up 3.70 won to end trading at 1,182.70 won.

Bond prices closed flat, with the yield on three-year Treasury notes fixed at 3.80 percent.

Source: Xinhua