Seoul shares nearly flat amid U.S. rate hike woes

South Korean stocks closed little changed Wednesday as investors took a wait-and-see approach amid jitters about a U.S. rate hike. The local currency ended flat against the U.S. dollar.

The benchmark Korea Composite Stock Price Index lost 2.14 points, or 0.1 percent, to finish at 2,042.51. Trading volume was moderate at 387.8 million shares worth 4.93 trillion won ($4.34 billion) with decliners outstripping gainers 487 to 314.

"Investors stayed on the sidelines as they're looking for answers (about the rate hike). If there's some kind of a new signal or change in the (Fed) statement, it will make the market more volatile," said Kim Jeong-hwan, an analyst at NH Investment & Securities Co.

The Federal Reserve began its two-day policy meeting for October with a possible rate hike on the agenda. Investors have long been awaiting answers as to when it will raise the interest rate, although the chance is again slim this time. The Fed is due to release its statement early Friday (Seoul time).

Foreigners dumped shares worth a net 218.7 billion won, whereas individuals and institutions snapped up a net 60 billion won and 136.4 billion won, respectively.

Shares closed mixed across the board, with logistics firms and builders ending the session lower, while foodmakers and chemical producers gathered ground.

Hyundai Glovis, the logistics unit of top automaker Hyundai Motor, plunged 13.06 percent to 203,000 won after it posted a poor third-quarter result. Hyundai Engineering & Construction also dipped 3.52 percent to 35,600 won.

In contrast, leading food manufacturer CJ Cheiljedang gained 0.95 percent to 371,000 won, with LG Chem, a key battery maker, spiking 5 percent to 315,000 won.

The local currency ended at 1,131.00 won against the greenback, unchanged from Tuesday.

Bond prices, which move inversely to yields, closed slightly higher. The yield on three-year Treasurys shed 0.4 basis point to 1.626 percent and the return on the benchmark five-year government bonds slipped 1.4 basis points to 1.761 percent. (Yonhap)