Shares end little changed on Fed disappointment

South Korean stocks closed nearly flat Friday as investors stayed on the sidelines on jitters over a U.S.-led economic boost amid lack of market momentum, analysts said. The local currency lost ground against the U.S. dollar.

After bobbing in and out of negative territory, the benchmark Korea Composite Stock Price Index shed 1.18 points or 0.06 percent to finish at 1,905.20. Trading volume was heavy at 639.1 million shares worth 4.39 trillion won ($3.87 billion) with gainers outpacing losers 420 to 392.

“(Ben) Bernanke’s speech will be somewhere along the lines of ‘we’ll see how upcoming economic data will turn out and then decide on the quantitative easing,’” said Cho Byung-hyun, an analyst at Tongyang Securities Co.

The chief of the U.S. Federal Reserve is set to speak to central bankers in Wyoming later in the day, a key speech that has drawn attention from global investors, but expectations are low that he will present another substantive stimulus plan.

The main bourse has seen a steep rise in the trading volume this week, although the index itself has stayed muted, reflecting “the investors are lost in their directions,” Cho said. (Yonhap News)