South Korean stocks closed 0.13 percent lower Monday as investors sat on the sidelines amid the political impasse in the United States, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index fell 2.56 points to finish at 1,994.42. Trading volume was low at 245.7 million shares worth 4.05 trillion won ($3.16 billion) with losers outpacing gainers 552 to 264.
Analysts said Seoul shares lost ground as Washington declared a partial halt to its government operations as of Oct. 1 (Seoul time) after the Republicans and Democrats failed to compromise on a spending resolution.
“Investors took a wait-and-see approach due to the rising uncertainties over the U.S. financial condition,” said Lee Sang-jae, a researcher at Hyundai Securities Co.
“Although the government shutdown itself is a minor issue, it will have an adverse impact on the market when it leads to a default,” Lee added.
Foreigners bought a net 227.6 billion won on the main bourse, extending its buying streak since Aug. 23. Retail and institutional investors sold off a net 47.5 billion won and 162.2 billion won each. (Yonhap News)
