Seoul shares close lower amid mixed ECB outlook

South Korean stocks closed almost flat Thursday amid a mixed outlook for the upcoming European Central Bank’s meeting, with investors divided over whether it will opt for monetary easing, analysts said. The South Korean won traded lower against the U.S. dollar.

The benchmark Korea Composite Stock Price Index moved up 3.55 points, or 0.18 percent, to 1,933.70. Trading volume was low at 220.6 million shares worth 4.13 trillion won ($3.91 billion), with losers outpacing gainers 487 to 290.

The index failed to defend the psychologically significant 2,000-point level, despite having surpassed the mark at different points of the trading session. The KOSPI has been struggling below the mark since closing at 2002.28 on the final trading session of last year.

Analysts said investors were divided whether the ECB meeting slated for later in the day (Seoul time) will come up with a stimulus move that could add some vitality to the market.

“When it comes to the South Korean market, the Chinese economy and monetary policies of advanced countries are key factors for foreigners,” said Kim Hak-kyun, a researcher at KDB Daewoo Securities Co.

“If the ECB comes up with a monetary easing policy, foreigners will expand their net buying in the local stock market.”

Foreigners bought a net 344.6 billion won while individuals offloaded a net 129.3 billion won. Institutions sold more shares than they bought at 228.3 billion won.

Tech shares gathered ground, with Samsung Electronics adding 2.43 percent to 1,390,000 won and LG Display climbing 3.15 percent to 27,800 won. Samsung Techwin added 0.7 percent to 57,900 won.

Builders traded mixed, with Hyundai Engineering & Construction falling 0.7 percent to 56,400 won while Daewoo Engineering & Construction added 3.22 percent to 8,020 won. Daelim Industrial lost 1.15 percent to 86,100 won.

Shipbuilders closed bearish, with Hyundai Heavy Industries falling 1.65 percent to 208,000 won and Samsung Heavy Industries losing 1.55 percent to 31,700 won. Daewoo Shipbuilding & Marine Engineering plunged 0.61 percent to 32,400 won.

The local currency ended at 1,057.90 won to the U.S. dollar, down 1.30 won from Wednesday’s close. (Yonhap)