Seoul stocks down on Fed meeting, Brexit woes

[THE INVESTOR] South Korean stocks fell for four straight sessions on Tuesday as investors awaited the U.S. Federal Reserve‘s meeting amid concerns over Britain’s possible exit from the European Union. The Korean won edged up against the U.S. dollar.

The benchmark Korea Composite Stock Price Index shed 7.05 points, or 0.36 percent, to close at 1,972.01. Trade volume was moderate at 434.38 million shares worth 4.91 trillion won ($4.19 billion), with losers far outnumbering winners 546 to 259.

Investors waited on the sidelines ahead of the Federal Reserve‘s two-day policy meeting that begins later in the day, analysts said. Sentiment was also down weighed down by the upcoming vote from Britain on June 23 on whether to remain in the European Union.

“The possibility of Brexit is low, but it could bring chaos to the global financial market if it‘s realized,” Yoon Young-kyo, an analyst at LIG Investment & Securities, said.

Market kingpin Samsung Electronics edged up 0.44 percent to 1,377,000 won and SK hynix, the world‘s second-largest chipmaker, rose 2.65 percent to 29,100 won.

Hanjin Shipping, South Korea‘s No. 1 container shipping line, jumped 6.26 percent to 2,290 won, and its smaller rival Hyundai Merchant Marine gained 2.75 percent to 14,950 won.

Lotte Group shares extended losses as prosecutors earlier in the day launched a second round of raid into affiliates of the nation’s fifth-largest conglomerate as part of a widening probe into the group‘s alleged slush funds.
 
Lotte Confectionery, a major food unit, slipped 2.54 percent to 192,000 won, and Lotte Chilsung, a beverage maker, dipped 3.93 percent to 1,783,000 won.

The local currency closed at 1,173.2 won against the U.S. dollar, up 0.2 won from the previous session’s close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasury added 2.6 basis points at 1.337 percent, and the return on the benchmark five-year government bond gained 2.2 basis points to 1.416 percent.

(theinvestor@heraldcorp.com)