Seoul stocks close 0.14 pct lower on fading earnings momentum

South Korean stocks finished 0.14 percent lower Friday as the bullish earnings momentum started to lose its steam, analysts said. The local currency lost ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) declined 2.49 points to trade at 1,737.03. Trading volume was heavy at 454.5 million shares worth 5.4 trillion won (US$4.9 billion), with losers outnumbering gainers 453 to 323.

After erasing modest opening gains, the key equity index remained range-bound throughout the session as the corporate earnings season neared an end. Technology firms including Samsung Electronics are slated to release their first quarter results next week, the last key sector to do so.

"Stronger-than-expected earnings surprises, which helped the key index recover from the Goldman shock, seem to be losing steam as the local earnings season comes to a close," said Lim Dong-lak, an analyst at Hanyang Securities.

Companies that posted bullish profits gained ground. LG Display, the liquid crystal display giant, jumped 3.41 percent to 45,450 won. The display maker reported after the Thursday market close 649 billion won in net profit in the January-March period, turning around from a loss a year earlier, riding solid demand in western markets.

No.1 carmaker Hyundai Motor Corp. extended its gains by jumping 3.59 percent to 130,000 won after reporting record-high earnings a day earlier.

POSCO fell 0.38 percent to 523,000 won on news that the company, the world's fourth-largest steelmaker, will lift steel prices by 25 percent on the back of rising costs for raw materials.

Smaller rival Hyundai Steel advanced 2.83 percent to 90,900 won with Dongkuk Steel Mill adding 1 percent to end at 25,250 won.

Affiliates of top life insurer Samsung Life Insurance also gathered ground on hopes that the insurance firm will make successful debut on the main stock bourse later this month.

Samsung Card, the credit card affiliate, rose 1.12 percent to 54,200 won with non-life insurance unit Samsung Fire & Marine Insurance gaining 1.72 percent to 207,000 won. Samsung Life Insurance is widely expected to disclose the price for its initial public offering of 44.4 million shares.

The local currency ended at 1,108.70 won to the U.S. dollar, down 0.40 won from Thursday's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasury notes declined 0.01 percentage point to 3.76 percent and the return on benchmark five-year government bonds fell 0.04 percentage point to 4.41 percent.