South Korean stocks finished 0.15 percent lower on Wednesday as investors reverted to a cautious mode ahead of the Federal Reserve’s policy meeting and lukewarm corporate earnings reports. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index, helped by overnight gains on Wall Street, started in positive territory but lost ground during the trading session to finish at 1,961.79, down 2.98 points from Tuesday’s close.
Trading volume was relatively light at 209.57 million shares worth 3.84 trillion won ($3.72 billion). Advancers edged out decliners 434 to 333, with 98 staying flat.
The fall marks the sixth consecutive trading session in which the KOSPI lost ground as investors, lacking confidence, adhered to a wait-and-see stance as the Federal Open Market Committee began its two-day-long policy meeting on Tuesday.
South Korea’s stock market will be closed on Thursday in observance of Labor Day, with the result of the Fed’s meeting to impact the market the following day.
“The lackluster performance of local blue chips in the first quarter, although not an earning shock, sapped investor confidence, particularly among foreign investors that caused the KOSPI to lose ground,” said Bae Sung-young, an analyst at Hyundai Securities Co.
He added that besides the FOMC, which is widely expected to confirm the Fed‘s scaleback of asset purchase program to $45 billion a month, other external factors like economic growth concerns in China seem to be affecting the bourse. (Yonhap)
