Seoul shares edge down ahead of U.S. meeting

South Korean stocks closed slightly down Tuesday as investors took a wait-and-see stance before the U.S. Federal Reserve's scheduled monetary policy meeting, analysts said. The local currency gained ground against the U.S. greenback.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 6.29 points, or 0.33 percent, to 1,925.68. Trading volume was heavy at 405.3 million shares worth 3.75 trillion won (US$3.57 billion), with decliners outnumbering advancers 506 to 303.

Analysts said investors were waiting for statements from the Federal Reserve Open Market Committee (FOMC) meeting starting later in the day. The central bank is expected to end its bond-buying program and hint at whether an interest hike is in the offing.

"There are no big issues to stir up the market," said Lawrence Kim, a researcher from Woori Investment & Securities Co. "Just ahead of the FOMC meeting, the KOSPI is showing no big movements."

He said the KOSPI is more sensitive to local companies' earnings reports, which have been already reflected in the stock prices.

"The South Korean equity market has been affected by global negative factors, but it rarely responds to positive ones," said Kim. "Investors are focusing more on third-quarter earnings. But there were no surprising results to give the KOSPI a momentum to get out of a tight box range."

Most shares finished in mixed territory, with technology firms and mobile operators bullish and carmakers and refiners bearish.

No. 2 home appliances maker LG Electronics climbed 0.46 percent to 65,000 won and chipmaker SK hynix advanced 3.14 percent to 46,000 won.

Top mobile carrier SK Telecom gained 1.28 percent to 276,500 won and runner-up KT rose 2.22 percent to 32,300 won.

Carmakers went south, with industry leader Hyundai Motor falling 1.42 percent to 173,500 won, and its smaller affiliate Kia Motors sliding 2.22 percent to 52,900 won.

Leading refiner SK Innovation lost 3.23 percent to 83,800 won and No. 3, S-Oil, tumbled 4.87 percent to 40,500 won.

LG Hausys, the country's largest decorative industrial materials manufacturer, plunged to the daily limit of 15 percent to close at 167,500 won on a disappointing third-quarter earnings report.

The local currency ended at 1,049.7 won against the U.S.dollar, up 2.5 won from Monday's close. (Yonhap)