Seoul shares slide on earnings pessimism

Tue Oct 9, 2012 10:45pm EDT

* KOSPI falls on Q3 earnings worries

* KEPCO down on KDIC stake sale

* Samsung Electronics sags despite TV music deal

SEOUL, Oct 10 (Reuters) - Seoul shares fell on Wednesday morning continuing a losing week, weighed by concerns about U.S. corporate earnings.

The Korea Composite Stock Price Index (KOSPI) ticked 1.03 percent lower to 1,958.63 points as of 0216 GMT.

"The lack of momentum from policymakers means that equities markets will take their cue from corporate fundamentals," said Kim Dae-joon, a strategist at Taurus Investment and Securities, in a note to investors.

Kim wrote that earnings surprises from the United States were likely to be fewer as the number of companies whose profits were expected to improve was shrinking.

Korea Electric Power Corp (KEPCO) slumped 2.8 percent following Korea Deposit Insurance Corp's (KDIC) sale of about $550 million worth of shares, according to a source with direct knowledge of the sale.

Shares in index heavyweight Samsung Electronics were down 1.9 percent, despite announcing a deal to bring music streaming service Spotify to its TVs.

Declining shares outnumbered winners 546 to 239.

The KOSPI 200 benchmark of core stocks was down 1.1 percent, while the junior KOSDAQ edged 0.6 percent lower. (Reporting By Somang Yang; Editing by Jacqueline Wong)