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An electronic board showing the Korea Composite Stock Price Index (Kospi) at a dealing room of the Hana Bank headquarters in Seoul on Tuesday. (Yonhap) |
South Korean stocks closed little changed Tuesday from the previous session, as investors took a breather ahead of earnings reports to be released by major companies later this week, amid worries over global inflation and US monetary tightening.
After bobbing in and out of positive territory, the benchmark Korea Composite Stock Price Index slipped 1.09 points, or 0.05 percent, to 2,235.07. Trading volume was moderate at 448.8 million shares worth 6.92 trillion won ($4.82 billion) with decliners outnumbering gainers 528 to 335.
Foreigners bought a net 78.8 billion worth of local equities, and institutions also scooped up a net 60.7 billion won. Individual investors sold off a net 134.7 billion won.
"Fundamental uncertainties still remain, such as what the Fed will offer in policy direction at the November meeting, but with the start of the earnings season, we're seeing a less jittery market at least for now in the short term," Han Ji-young, an analyst at Kiwoom Securities Co., said.
US Purchasing Managers' Index data showed Monday (local time) that services and manufacturing sectors contracted this month from a month earlier, an indication that the Federal Reserve's monetary tightening is working, according to analysts.
Market watchers increasingly note the Fed may start slowing down the interest rate increases in December, while some others remain skeptical about the possibility.
On Friday (US time), Mary Daly, president of the San Francisco Federal Reserve Bank, suggested planning for "stepping down" the monetary tightening aimed at reducing decades-high inflation.
In Seoul, top South Korean companies are set to release their third-quarter earnings later this week. The results will likely offer investors a clue as to how they are doing in the face of such headwinds as global inflation and monetary tightening to rein in sharp price growth.
Chemical and steel companies were among the biggest decliners on the Kospi. Top chemical company LG Chem slumped 4 percent to 552,000 won, and steelmaker Posco Holdings dipped 3.43 percent to 239,500 won.
Among gainers, top-cap Samsung Electronics gained 0.35 percent to 57,700 won and biopharmaceutical giant Celltrion jumped 3.65 percent to 184,500 won.
The local currency ended at 1,433.10 won against the US dollar, up 6.6 won from Monday's close, after plunging to the lowest level in more than 13 years at one point in the intraday trading. (Yonhap)
