Stocks fall 0.79% on U.S. Fed disappointment

South Korean stocks fell 0.79 percent Thursday after the U.S. Federal Reserve failed to announce new economic stimulus measures to fuel growth of the world’s largest economy, analysts said. The local currency dipped against the U.S. dollar.

The benchmark Korea Composite Stock Price Index gave up 14.97 points to close at 1,889.15. Trading volume was light at 369 million shares worth 3.72 trillion won ($3.23 billion), with gainers outpacing losers 421 to 402.

“The Fed’s plan to maintain its current ‘operating twist’ program through the end of the year had been anticipated and did not meet expectations of investors,” said Park Sang-hyun, an economist at Hi Investment & Securities.

Many investors had expected a new round of quantitative easing that could have bolstered the U.S. economy and helped growth in other countries.

Others such as Tongyang Securities analyst Jung In-ji said the KOSPI needed an adjustment after rising steadily this week in the wake of upbeat election results in Greece.

He said that there is a need to keep tabs on developments taking place in countries like Spain that can still exert influence on the market.

Big-cap shares in electronics, steel, and chemicals lost ground, while some financials pulled off gains.

Market bellwether Samsung Electronics dropped 2 percent to 1,227,000 won, with leading carmaker Hyundai Motor losing 1.18 percent to 250,500 won.

No. 2 carmaker Kia Motors shed 1.50 percent to 78,800 won, with top steelmaker POSCO falling 0.92 percent to 379,000 won.

LG Chem, a leading manufacturer of rechargeable batteries, lost 1.87 percent to 288,500 won, with Hyundai Heavy Industries, the world’s largest shipmaker, falling 1.62 percent to 273,500 won.

Top auto parts maker Hyundai Mobis edged up 0.35 percent to 286,500 won, with Samsung Fire and Marine Insurance jumping 1.19 percent to 212,000 won. 

(Yonhap News)