Global Market: South Korean shares fall 2% as Samsung Electronics slides after earnings

South Korean shares fell sharply on Thursday, reversing early gains as Samsung Electronics tumbled after reporting third-quarter results that missed analysts’ expectations for net profit, according to a report by Reuters.

The benchmark KOSPI index was down 131.04 points, or 2.18%, at 5,881.40 as of 0132 GMT, having risen more than 1% earlier in the session, the report stated.

Also Read | Fed holds rates, says data will guide next move


Samsung Electronics fell 4.13%, erasing its earlier gains after the company’s third-quarter net profit came in below market expectations. Rival chipmaker SK Hynix was up 1.14%, although it too pared gains during the session.

South Korean authorities signalled vigilance amid the market volatility. The country’s finance minister pledged an immediate response if volatility intensified, while the Bank of Korea said it was closely monitoring domestic financial market conditions.

Also Read | Global Market Today: Asian shares fall as Alphabet earnings miss drags Wall St futures lower

Losses extended across several heavyweight stocks. Battery maker LG Energy Solution plunged 9.37%, while Hyundai Motor and Kia Corp fell 2.70% and 1.76%, respectively. Steelmaker POSCO Holdings declined 3.01%. Samsung BioLogics bucked the trend, rising 0.15%, as per the report.

Market breadth remained firmly negative, with 766 stocks declining against 118 advancing among the 912 issues traded.

Foreign investors, however, were net buyers of South Korean shares worth 380.8 billion won ($283.81 million).

In currency trading, the South Korean won strengthened 0.72% to 1,332.4 per dollar on the onshore settlement platform, compared with its previous close of 1,342.0.

South Korean government bond futures also advanced. December futures on three-year Treasury bonds gained 0.13 point to 103.33.

In the cash bond market, the yield on the most liquid three-year Korean Treasury bond fell 4.2 basis points to 3.758%. The benchmark 10-year Treasury bond yield declined 1.6 basis points to 4.090%.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)