Seoul shares almost flat on profit-taking

South Korean stocks closed marginally lower Friday, as investors opted to lock in part of recent gains spurred by the U.S. Federal Reserve's dovish stance on its monetary policy, analysts said. The local currency lost ground against the U.S. dollar.
  

The Korea Composite Stock Price Index fell 0.65 point, or 0.03 percent, to 2,037.24. Trading volume was moderate at 345.9 million shares worth 5.12 trillion won ($4.56 billion) with decliners outpacing gainers 409 to 407.
  

Analysts said the KOSPI, which bobbed in and out of negative terrain over the session, lost momentum after what had been long anticipated from the Fed. On Wednesday, the top U.S. monetary policy body removed the word "patient" in the statement regarding the rate hike expected as soon as June, in a more dovish manner than expected.  
  

They, however, pointed out that the local stock market has seen a continued inflow of foreign capital into the local stock market over the week, which may be a positive signal for the main index to move upward.
  

"Foreigners have bought a net 2.2 trillion won worth of local stocks so far in March alone, which means that uncertainties have eased after the Fed event," said Seo Myung-chan, an analyst at Kiwoom Securities Co.
  

Offshore investors snapped up more shares than they sold at a net 217.4 billion won, with retail investors also buying a net 21.5 billion won.
  

Institutions, in contrast, dumped a net 223.1 billion won, driving down the index.
  

Large caps ended lower across the board. Market behemoth Samsung Electronics fell 0.41 percent to 1,464,000 won, with carmaker Hyundai Motor sliding 1.63 percent to 181,000 won.
  

SK Telecom, the country's largest mobile carrier, also slumped 2.07 percent to 284,500 won.
  

Financial and domestic-focused issues finished bullish. Top Internet portal operator Naver was up 2.03 percent to 654,000 won, and No. 1 lender Shinhan Financial Group gained 1.27 percent to 44,000 won.
  

The local currency ended at 1,123.00 won against the greenback, down 5.8 won from Thursday's close.
  

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys slid 2.8 basis points to 1.797 percent and the return on the five-year government bonds fell 2.6 basis points to 1.900 percent. (Yonhap)