SEOUL, October 08 (AJP) -South Korean stocks edged lower Thursday morning as foreign and institutional selling continued to retreat despite stellar third-quarter earnings guidance from Samsung Electronics and LG Energy Solution.
The benchmark KOSPI fell 0.2 percent to 6,793.26 as of 10:30 a.m. (0130 GMT) after trading between 6,731.75 and 6,810.83.
Foreign investors sold 635.7 billion won ($475.2 million) worth of shares, while institutions unloaded 300.7 billion won. Retail investors bought 704.6 billion won, helping limit the decline.
Samsung Electronics slipped 0.2 percent to 268,000 won despite reporting its highest quarterly operating profit on record on still-robust demand for memory chips powering artificial intelligence.
The company estimated third-quarter operating profit at 107.4 trillion won, up 782.5 percent from a year earlier. Revenue jumped 126.6 percent to 195 trillion won, according to its preliminary earnings guidance released Thursday.
Samsung's shares nevertheless declined, suggesting that much of the earnings optimism had already been reflected in its recent gains.
Rival SK hynix moved in the opposite direction, rising 1.7 percent to 1,752,000 won.
Battery makers outperformed the broader market after LG Energy Solution reported stronger-than-expected third-quarter earnings.
LG Energy Solution climbed 5.5 percent to 412,500 won after estimating operating profit at 756 billion won, up 25.7 percent from a year earlier. Revenue rose 59 percent to about 9.6 trillion won, marking a quarterly record.
The earnings improvement was supported by growing demand for energy storage systems (ESS), particularly in North America, as the company sought to offset slower growth in the electric vehicle market.
The operating profit included 416.9 billion won in U.S. manufacturing tax credits. Excluding those incentives, the company posted an operating profit of 339.1 billion won. The results also benefited from compensation related to an automaker's unmet purchase commitments.
Samsung SDI gained 5 percent to 589,000 won, extending the rally across battery-related stocks.
Elsewhere on the KOSPI, Hyundai Motor fell 2.9 percent to 326,250 won, while Doosan Enerbility declined 4.5 percent to 76,900 won.
LG Electronics slipped 3.13 percent to 201,500 won after reporting preliminary third-quarter operating profit of 781.8 billion won on revenue of 23.83 trillion won. Both figures increased from a year earlier but fell short of market expectations.
Naver lost 2.2 percent to 184,700 won.
Attention also turned to Hanmi Pharmaceutical after its obesity treatment Eppe received regulatory approval Wednesday, becoming the first domestically developed GLP-1 obesity drug approved in South Korea.
The once-weekly injection, known chemically as efpeglenatide, will compete with Novo Nordisk's Wegovy and Eli Lilly's Mounjaro.
Hanmi said the drug achieved an average weight reduction of 9.75 percent over 40 weeks in a phase 3 clinical trial involving 448 Korean patients. The company plans to launch the treatment as early as this month.
Electric products led sector gains, rising 4.5 percent, while battery production and sodium-ion battery themes advanced 4.5 percent and 4.7 percent, respectively.
The tech-heavy KOSDAQ edged down 0.1 percent to 897.62, after trading between 883.85 and 903.12.
Foreign investors sold 56.1 billion won as institutions unloaded 17.5 billion won, while retail investors bought 74.6 billion won.
Biotechnology shares were among the biggest decliners on the KOSDAQ. Peptron plunged 29.9 percent to 91,700 won, while Alteogen fell 6.4 percent to 240,500 won.
Samchundang Pharm dropped 3.7 percent to 232,000 won, while HLB slipped 0.8 percent to 45,500 won.
By contrast, Jusung Engineering jumped 10.4 percent to 273,250 won, while EcoPro gained 1.9 percent to 93,600 won.
Elsewhere on the index, Taihan Fiberoptics fell 4.1 percent to 17,210 won and OE Solutions dropped 4.8 percent to 4,960 won.
LED equipment stocks led thematic gains, rising 5.7 percent, while display equipment and components advanced 2.5 percent.
Throughout Asia, Japan's Nikkei 225 fell 0.7 percent to 69,563.75, while Hong Kong's Hang Seng Index slipped 0.2 percent to 24,079.81. China's Shanghai Composite bucked the regional decline, rising 0.3 percent to 3,851.67.
The Korean won strengthened 0.3 percent to 1,337.7 won per dollar.
Oil prices rose amid renewed concerns over Middle Eastern supply disruptions. West Texas Intermediate crude gained 1.4 percent to $89.50 a barrel, while Brent crude advanced 1.6 percent to $101.80.
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