Stock index stays flat

South Korean stocks remained nearly unchanged Tuesday as investors took to the sidelines with no clear signs of economic recovery in sight, analysts said. The local currency declined against the U.S. dollar.

The benchmark Korea Composite Stock Price Index dipped 0.18 points, or 0.01 percent, to 1,996.03. Trading volume was moderate at 491.8 million shares worth 3.6 trillion won ($3.2 billion) with gainers closely outpacing decliners 412 to 399.

“There were some good news from the United States overnight, but they are still very weak signs. And policymakers said more stimulus is needed for the economy,” said Kwak Jung-bo, an analyst from Samsung Securities Co.

The U.S. manufacturing sector expanded last month for the first time in four months, beating market expectations, but other economic data from Europe and China showed that the world economy is still suffering slowing growth.

“But the global financial market seems to regain stability with the promised injections of liquidity from Europe and the U.S. The main index will move in a tight range for a while,” noted Kwak.

“And there is no big issue to push up or drag down the index further.”

Foreigners snapped up a net 58.9 billion won of local shares on a two-session buying streak.

Stocks closed mixed across the board. (Yonhap News)