Samsung’s earnings depress stock market

Despite good news from European policy makers who signaled that they will keep interest rates low for longer to boost their economies, Korean stocks fell after market bellwether Samsung Electronics missed an estimate for second quarter earnings.

The benchmark Kospi fell 0.32 percent or 5.83 points yesterday to close at 1,833.31, while most Asian stocks rose following remarks from European Central Bank President Mario Draghi and Bank of England chief Mark Carney who hinted they’d keep stimulus ongoing.

Foreigners offloaded stocks, selling about 150 billion won ($131 million), while institutional investors also sold 90 billion won.

While Samsung Electronics plunged 3.8 percent to 1.267 million won, its smaller rival LG Electronics suffered a 0.99 percent decline to finish at 70,300 won. SK Hynix, nation’s top chipmaker, also lost 1.22 percent to 28,400 won.

Ssangyong Motor, which is the only local automaker to report a domestic sales increase in the first half of the year, jumped 1.58 percent to 8,990 won, while Kia Motors gained 2.04 percent to 59,900 won. However, the nation’s largest automaker Hyundai Motor slipped 0.23 percent to 213,500 won.

Daewoo Shipbuilding and Marine Engineering soared 3.82 percent to 25,800 won, while Hyundai Heavy Industries rose 0.85 percent to 178,500 won. However, despite securing a 350 billion won order from Korea Electric Power to supply power equipment, Doosan Heavy Industries & Construction stayed flat at 41,950 won.

Steel manufacturers were also bullish. Posco rose 1.37 percent to 296,500 won, while Hyundai Steel climbed 1.94 percent to 63,100 won. Hyundai Hysco, which specializes in steel sheets for automobiles, soared 5.37 percent to 35,300 won.

However, shipping companies were in negative territory. Hanjin Shipping, the nation’s largest shipper, slid 0.81 percent to 7,330 won and Hyundai Merchant Marine plunged 2.64 percent to 14,750 won. However, Korea Line Corporation jumped 1.71 percent to 59,500 won.

SK Telecom, the nation’s largest mobile carrier, soared 3.34 percent to 216,500 won and LG U+ rose 4.74 percent to 13,250 won on high market expectations of second quarter earnings.

BY JOO KYUNG-DON [kjoo@joongang.co.kr]