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Market stays flat despite Samsung gains

July 11,2017
Stocks closed nearly flat Monday as investors took a wait-and-see stance on second-quarter earnings of listed firms, although Samsung Electronics closed higher on its robust performance estimate, analysts said. The Korean won rose against the U.S. dollar.

The benchmark Kospi edged up 2.23 points, or 0.09 percent, to close at 2,382.10. Trade volume was low at 277.3 million shares worth 4.87 trillion won ($4.23 billion), with losers outnumbering gainers 583 to 234.

Analysts said many investors carefully watched the second-quarter earnings of listed firms. “Except for information-technology shares, the second-quarter consensus is being downgraded,” said Lee Kyung-min, an analyst at Daishin Investment & Securities, adding that concerns over non-IT sectors may escalate down the road.

Samsung Electronics closed 1.67 percent higher at 2,433,000 won. Last week, the tech giant said its second-quarter operating profit shot up nearly 72 percent on-year to post a record-high at 14 trillion won.

SK Hynix also increased 1.05 percent to 67,300 won. The chipmaker said it officially launched a new affiliate, SK Hynix System IC, which will focus on the company’s foundry business.

Carmakers were major losers, with No. 1 carmaker Hyundai Motor falling 2.31 percent to 148,000 won and top auto parts maker Hyundai Mobis losing 1.02 percent to 243,000 won.

Steelmakers closed mixed, with top player Posco advancing 1.35 percent to 300,000 won, while Hyundai Steel shed 0.49 percent to 61,300 won.

The secondary Kosdaq index closed at 657.86, down 5.91 points or 0.89 percent from the previous trading day. The top five listed stocks all declined.

Pharmaceutical company Celltrion lost 0.88 percent to close at 113,000 won while entertainment content provider CJ E&M dipped 0.61 percent to 574,000 won.

The local currency closed at 1,149.50 won against the U.S. dollar, up 4.8 won from the previous session’s close.

Bond prices closed higher. The yield on three-year Treasurys shed 2.5 basis points to 1,756 percent, and the return on the benchmark five-year government bond lost 3.1 basis points to 1.969 percent.

BY KIM JEE-HEE, YONHAP [kim.jeehee@joongang.co.kr]