South Korean stocks closed almost unchanged Wednesday as investors took to the sidelines ahead of a much-anticipated rate hike in the United States and on a growing spat between South Korea and China over the deployment of a US missile defense system here. The Korean won rose against the US dollar.
The benchmark Korea Composite Stock Price Index moved up 1.36 points, or 0.06 percent, to close at 2,095.41. Trade volume was moderate at 375 million shares worth 4.38 trillion won ($3.82 billion), with losers outnumbering gainers 431 to 358.
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The Korean stock market is likely to be affected by the Fed meeting. (Yonhap) |
The local stock market opened higher as top market cap Samsung Electronics continued to rise on hopes for earnings, but investors dumped part of share holdings to lock in recent gains ahead of the Federal Reserve's much awaited rate hike next week.
Also, market sentiment was dampened by a growing conflict between Seoul and Beijing over the installation of the missile defense battery.
"Investors are expected to take a wait and see mode until the Fed's meeting slated for next week," said Kim Sung-hwan, an analyst at Bookook Securities.
Top cap Samsung Electronics ended flat at 2,010,000 won, after touching a fresh record high.
SK hynix, a major chipmaker, shed 1.64 percent to end at 48,000 won, while LG Electronics, a major home appliance maker, continued to build up gains rising 2.53 percent to end at 64,900 won on expectations of an improvement in its earnings.
Banking stocks also ended higher with KB Financial rising 1.98 percent to end at 48,900 won and Shinhan Financial also up 0.43 percent to 47,150 won.
POSCO, the top steelmaker, advanced 0.69 percent to an almost yearly high of 290,000 won on optimism over an increase in steel prices.
Hyundai Motor, the country's leading automaker, fell 0.69 percent to end at 144,000 won.
SK Telecom, the No. 1 mobile carrier, jumped 4.33 percent to end at 241,000 won and the third-largest mobile phone operator LG Uplus advanced to a record high of 13,850 won, up 1.84 percent.
AmorePacific, the country's No. 1 cosmetics maker, rose for the third consecutive day, closing at 272,500 won, up 3.02 percent from the previous session's close.
The local currency closed at 1,145.50 won against the US dollar, down 0.60 won from the previous session's close.
Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys closed flat at 1.784 percent, while the return on the benchmark five-year government bond shed 0.4 basis point to 1.989 percent. (Yonhap)
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