South Korea’s stock market is suffering a relatively sharp slump compared with other regional rivals as local companies, dented by a stronger local currency and weak domestic demand, are projected to have failed to meet market expectations in their second-quarter earnings, industry data showed on Tuesday.

South Korea’s key stock index, the KOSPI, gained 0.15 percent this month through Monday, the lowest among 14 other regional stock indices, according to the data. Over the past three months, the KOSPI has risen 0.77 percent, flagging the smallest rise after the Shanghai Stock Exchange Composite Index, which garnered a 0.05 percent gain.

India’s benchmark S&P BSE Sensex Index topped the list with a 2.32 percent advance this month, and its three-month performance was also good with a 16.36 percent rise.

The Philippine Stock Exchange climbed 2.26 percent this month.

The comparable figures for India’s benchmark Nifty Index and Indonesia’s Jakarta Composite Index were 1.94 percent and 1.92 percent, respectively, the data showed.

“The KOSPI is locked in a narrow trading range, alienated from the global stock market’s dramatic rise over the past few months,” said Kim Yun-seo, an analyst at KTB Investment & Securities. “Local companies are hard-pressed to meet market expectations, but things are feared to turn out gloomy.”

Faced with a less-competitive currency, South Korean firms are struggling to maintain their edge in overseas markets. Also, weak domestic demand is hurting their profitability, analysts said.

Samsung Electronics Co., the world’s largest manufacturer of smartphones, on Tuesday estimated that its second-quarter operating profit dropped to 7.2 trillion won ($7.11 billion) from 9.53 trillion won a year earlier as the local bourse’s top market cap struggled with growing competition from Chinese rivals and a strong won hammered down its profitability. The Korean won has gained some 5 percent so far this year.

Earnings outlook for South Korean companies has been downgraded as the firmer local currency is feared to have undercut their performance. (Yonhap)