South Korean stocks closed almost flat Monday as investors took a wait-and-see approach on the U.S. Federal Open Market Committee meeting later this week, analysts said. The local currency dropped against the U.S. dollar.
The benchmark Korea Composite Stock Price Index gained 1.54 points, or 0.08 percent, to close at 1,987.33. Trading volume was moderate at 312.96 million shares worth 4.55 trillion won ($4 billion), with losers outpacing gainers 416 to 387.
Analysts said Seoul shares traded in a limited range as investors eyed the two-day FOMC meeting that kicks off Tuesday. The Fed is expected to remove the word “patient” in its official statement regarding its monetary policy, which would hint of a rate hike in the near future.
“It is likely that the FOMC will drop the word,” said Cho Byung-hyun, an analyst at Yuanta Securities Korea. “Such an outlook has already been reflected in the market, leading to the steady approach for the time being.”
Foreign investors sold more shares than they bought at 3.36 billion won, while individuals bought a net 4.94 billion won. Institutions offloaded a net 16.3 billion won.
Shares of top steelmaker POSCO moved down 2.45 percent to 259,000 won after its builder affiliate, POSCO Engineering & Construction, came under a prosecution investigation last week for allegedly creating massive slush funds overseas.
Shipbuilders also fell, with Hyundai Heavy Industries decreasing 4.49 percent to 117,000 won and Samsung Heavy Industries losing 4.15 percent to 18,500 won. Daewoo Shipbuilding & Marine Engineering shed 5.51 percent to 18,000 won.
Top tech giant Samsung Electronics climbed 0.89 percent to 1,470,000 won, and No. 2 chipmaker SK hynix also advanced 3.85 percent to 45,800 won. LG Display added 3.41 percent to 31,850 won, and LG Electronics also increased 0.17 percent to 59,600 won.
Carmakers traded mixed, with Hyundai Motor adding 2.03 percent to 175,500 won while its sister Kia Motors shed 0.54 percent to 46,100 won. Hyundai Mobis added 0.6 percent to 252,000 won.
The local currency closed at 1,131.50 won against the dollar, down 3.00 won from Friday’s close.
Bond prices, which move inversely to yields, ended higher. The yield on three-year Treasurys moved down 1.3 basis points to 1.856 percent, and the return on the benchmark five-year government bonds lost 2.8 basis points to 1.985 percent. (Yonhap)
