KOSPI closes 2.6 percent lower as Samsung earnings fail to stem selling

The index fell to 6,626 points despite Samsung's record profit guidance as oil-driven inflation fears and heavy foreign selling hit shares.

KOSPI closed on October 8 at 6,626 points, down 2.6 percent, as semiconductor shares reversed early gains despite Samsung Electronics projecting record quarterly profit. Yonhap News Agency said the index opened 0.1 percent higher before falling to a close of 6,625.93 points.

Samsung Electronics estimated third-quarter operating profit at KRW 107.4 trillion, up 782.5 percent from a year earlier, according to Samsung Electronics. Its shares nevertheless fell 2.4 percent. SK hynix also lost 2.4 percent, while Samsung Electro-Mechanics dropped 3.6 percent, according to Aju Press.

Foreign selling and oil pressure the index

Foreign investors sold a net KRW 1.99 trillion of KOSPI shares and institutions sold KRW 1.67 trillion, while retail investors bought KRW 2.90 trillion. Decliners outnumbered advancers 625 to 252. Higher oil prices added to inflation concerns, while the US 10-year Treasury yield remained near 5.33 percent, Aju Press reported.

What comes next

The Korea Exchange will be closed on Friday, October 9, for Hangeul Day and will reopen on Monday, October 12, according to Aju Press. Samsung Electronics is scheduled to publish detailed third-quarter results on October 29, including business-division figures, according to The Korea Times.

More market reports and analysis on the KOSPI