Key Takeaways
- South Korean shares fell on Wednesday.
- Investors are cautious ahead of Samsung Electronics' earnings release.
- Samsung is expected to report a nearly nine-fold increase in Q3 operating profit.
South Korean shares experienced a decline on Wednesday, with the benchmark KOSPI down 43.20 points, or 0.62%, at 6,898.19 as of 0138 GMT.
The market's cautious stance is primarily due to the upcoming earnings release from Samsung Electronics, which is expected to report a significant increase in its third-quarter operating profit, driven by strong demand for artificial intelligence (AI) products.
Samsung Electronics saw a slight increase of 0.18% after rising more than 2% earlier in the session, while its peer SK Hynix lost 1.52%.
Analysts have adjusted their forecasts, cutting them by nearly 8% since the end of August, despite the anticipated strong performance.
Other major index heavyweights also showed mixed performance, with LG Energy Solution climbing 0.38%, while Hyundai Motor and Kia Corp saw a decline of 2.16% and 1.95%, respectively.
Steelmaker POSCO Holdings and drugmaker Samsung BioLogics also experienced a decline, shedding 2.36% and 1.91% respectively.
Of the 911 traded issues, 415 shares advanced, while 438 declined, indicating a mixed market sentiment.
Foreigners were net sellers of shares worth 865.3 billion won ($646.93 million).
The South Korean won was quoted at 1,338.3 per dollar, 0.04% higher than its previous close at 1,338.8.
In the money and debt markets, December futures on three-year treasury bonds lost 0.01 point to 102.62. The most liquid three-year Korean treasury bond yield rose by 1.4 basis points to 3.949%, while the benchmark 10-year yield rose by 1.1 basis points to 4.384%.
The upside for the domestic market will be capped by wait-and-see sentiment ahead of Samsung Electronics’ earnings and caution ahead of a holiday later this week.
Han Ji-young, Analyst at Kiwoom Securities
