Shares end little changed ahead of U.S. announcement

South Korean stocks finished little changed on Thursday as investors turned cautious before the U.S. central bank’s decision on another round of monetary stimulus to boost the economy, analysts said. The local currency declined against the U.S. dollar.

Swinging between gains and losses, the benchmark Korea Composite Stock Price Index gained 0.66 points, or 0.03 percent, to 1,950.69. Trading volume was heavy at 956.4 million shares worth 5.97 trillion won ($5.29 billion), with gainers slightly outnumbering losers 438 to 380.

“The key index made mixed movements throughout the day,” said Lee Seung-woo, a market analyst at Daewoo Securities Co. “But the entire trend was stable as investors are focusing on the Federal Reserve’s actions regarding economic stimulus.”

The Fed is highly expected to announce a fresh round of quantitative easing after wrapping up its two-day meeting on Thursday.

The German top court’s approval of a eurozone bailout fund gave little impact, as it was already reflected in the market, added Lee.

Lee also noted that the Korean central bank’s freeze of key rates was not a big negative factor in the market.

“The Bank of Korea unexpectedly held the rates steady, but there still remains the possibility that it will raise them in the near future. It’s not a big matter,” said the analyst.

Foreign investors scooped up a net 123.3 billion won worth of local shares on a five-session buying streak, while institutions turned to net sellers to offload a net 108.8 billion won.

South Korean tech firms finished higher after Apple launched the highly-anticipated iPhone 5 overnight.

Samsung Electronics, the world’s largest smartphone maker, gained 0.54 percent to 1,301,000 won, and its smaller rival LG Electronics jumped 2.49 percent to 74,100 won.

However, LG Display, a supplier of a display panel of the new iPhone 5, fell 1.99 percent to 27,050 won.

Mobile carriers also finished bullish, with leading SK Telecom rising 1 percent to 152,000 won and No. 2 player KT adding 0.69 percent to 36,350 won.

The local currency ended at 1,128.4 won to the greenback, down 2 won from Wednesday’s close, as investors decreased holdings of the local currency, dealers said. (Yonhap News)