Shares slip 0.25% ahead of U.S. stimulus package

Korean stocks edged down 0.25 percent Monday as investors sat on the sidelines before the envisioned U.S. central bank’s stimulus packages, analysts said.

The local currency climbed against the U.S. dollar.

The benchmark Korea Composite Stock Price Index lost 4.88 points to 1,924.7, ending a two-session rally sparked by the European Central Bank’s bond-purchasing plan last week. Trading volume was heavy at 608.9 million shares worth 4.28 trillion won ($3.79 billion), with losers outnumbering winners 414 to 390.

“Investors are taking a wait-and-see stance ahead of a set of big events later this week,” said Lee Da-seul, an analyst at Korea Investment & Securities Co.

Market players are expecting worse-than-expected job data in the U.S to spur the Federal Reserve to take a third round of quantitative easing in an upcoming meeting on Wednesday.

Disclosure of the highly anticipated iPhone 5 of Apple Inc. is also slated for Wednesday, an event that could affect the entire tech market, said Lee.

“Last week, the ECB said it will buy soaring bonds of some ailing European countries. It boosted investor sentiment but failed to remove persistent concerns that the region’s debt crisis is not over,” said the analyst.

Foreigners scooped up a net 208 billion won worth of local shares on a two-session buying streak, while retail investors dumped a net 148.5 billion won.

Shares closed in mixed territory across the board.

Market bellwether Samsung Electronics stayed flat at 1,250,000 won, and the world’s No. 2 memory chipmaker SK hynix fell 1.11 percent to 22,250 won.

Shipbuilders were bearish, with top shipyard Hyundai Heavy Industries slipping 0.42 percent to 238,500 won and Daewoo Shipbuilding & Marine Engineering losing 1.94 percent to 25,300 won.

Leading carmaker Hyundai Motor gained 0.21 percent to 236,500 won while its smaller affiliate Kia Motors retreated 0.27 percent to 72,900 won.

The local currency ended at 1,129.3 won to the greenback, up 1 won from Friday’s close, as buyers’ appetite for risky assets grew on hopes of the Fed’s stimulus measures, dealers said. (Yonhap News)