Lead

Seoul shares opened lower on Tuesday, bucking overnight gains on Wall Street, as investors took profits after Samsung Electronics released its preliminary second-quarter earnings estimate. The benchmark Korea Composite Stock Price Index (KOSPI) fell at the opening bell, with different reports showing declines of 1.6 percent, 3.7 percent, and 5.39 percent by late morning.

Coverage Comparison

Yonhap News reported that the KOSPI opened 1.6 percent lower at 7,920.48, while another dispatch said the index fell 3.7 percent to 7,756.80 at the opening. A later report showed the index extending losses to 5.39 percent, down 433.81 points to 7,617.52 as of 11:20 a.m., as profit-taking intensified and foreign selling weighed on the market.

The divergence in the reported opening levels reflects the evolving market conditions throughout the morning session. All reports attributed the decline to profit-taking after Samsung Electronics estimated its April-June operating profit at 89.4 trillion won (US$58.4 billion), beating market forecasts. The estimate includes provisions for employee bonuses; excluding those provisions, operating profit is estimated at around 100 trillion won.

Key Claims

  • Samsung Electronics estimated its second-quarter operating profit at 89.4 trillion won, beating market forecasts, according to Yonhap.
  • The estimate reflects provisions for employee bonuses; excluding them, operating profit is estimated at around 100 trillion won.
  • Market bellwether Samsung Electronics lost value, with declines of 3.9 percent, 5.6 percent, and 7.4 percent reported at different points during the morning.
  • Chip giant SK hynix declined, with reports showing falls of 1.2 percent, 2.3 percent, and 6.4 percent ahead of its planned $29 billion U.S. listing later this week.
  • Hanwha Ocean plunged 21 percent to 23 percent after a South Korean consortium including the shipbuilder failed to win Canada's multibillion-dollar submarine procurement project.
  • Institutions and foreigners sold a net 97.3 billion won and 1.74 trillion won, respectively, while individuals bought a net 1.81 trillion won, as of 11:20 a.m.
  • Technology stocks led the declines, with Hyundai Motor dropping 4.9 percent to 5.9 percent and Hanwha Aerospace shedding 4 percent to 7.9 percent.
  • Among gainers, Amorepacific rose 1.7 percent to 2.9 percent, and SK Innovation climbed 1.87 percent to 3.9 percent.
  • The Korean won traded at 1,527.40 won per U.S. dollar as of 11:20 a.m., up 2.6 won from the previous session, while another report showed it at 1,530.35 won at 9:15 a.m., down 0.35 won.