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Seoul shares fall as earnings concerns hurt tech sector; LG Display slumps
April 18, 2013 / 2:30 AM / 5 years ago

Seoul shares fall as earnings concerns hurt tech sector; LG Display slumps

* LG Display down 4 pct after key Apple supplier’s weak earnings

* Automakers fall after decline in European car sales

* Investors favour defensives

SEOUL, April 18 (Reuters) - Seoul shares fell on Thursday morning, as LG Display led a broad selloff of tech stocks on worries about slowing demand for Apple Inc’s products and a dour growth outlook for Intel.

The Korea Composite Stock Price Index (KOSPI) fell 0.4 percent to 1,915.39 points as of 0209 GMT. The mood was also dimmed by a recent run of soft global data that has triggered broad declines in equities and commodities.

“The main board is tracking U.S. stock declines as local institutions mainly offload shares in Apple suppliers,” said Kim Sung-hwan, an analyst at Bookook Securities.

Tech shares fell, led by a sharp 4 percent drop in Apple supplier LG Display after a poor revenue forecast from another key Apple supplier Cirrus Logic on Wednesday raised worries of slowing demand for the iPhone maker’s products.

Chipmakers also underperformed, after world’s largest semiconductor maker Intel Corp forecast a sharp decline in its current-quarter revenue and trimmed its 2013 capital spending plans.

Index heavyweight Samsung Electronics slid 0.7 percent while SK Hynix dropped 2.8 percent.

Local institutions and foreign investors sold a net 153.8 billion won ($137.51 million) worth of KOSPI shares near mid-session, weighing on the index. Declining shares outnumbered winners 438 to 318.

Most large-caps were down, with automakers losing ground after a 10.3 percent decline in March European car sales, heading for a sixth straight annual decline to a two-decade low.

Hyundai Motor Co fell 1.6 percent while sibling Kia Motors dropped 1.2 percent.

Investors favoured some defensives with food processor Orion Corp up 2.4 percent while tobacco company KT&G Corp gained 2.7 percent.

The KOSPI 200 benchmark of core stocks was down 0.6 percent, while the junior KOSDAQ edged 0.1 percent lower. ($1 = 1118.4500 Korean won) (Reporting by Joyce Lee; Editing by Shri Navaratnam)

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