South Korean stocks fell 0.56 percent Thursday following the U.S. Federal Reserve’s announcement of no fresh action to boost the slowing economy, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index lost 10.53 points to 1,869.4. Trading volume was light at 267.4 million shares worth 3.35 trillion won ($2.96 billion), with losers outnumbering gainers 446 to 342.
“The meeting of the Federal Open Market Committee’s was somewhat disappointing even though the market did not expect more powerful growth-supportive measures,” said analyst Kim Ji-un from Shinhan Investment Corp.
Wrapping up its two-day policy meeting, the Fed said Wednesday that it will not take immediate action to boost the economy but keep its monetary policy unchanged.
The market will now turn its focus to the highly anticipated European Central Bank meeting on Thursday, looking for definitive signs the central bank will make additional stimulus moves.
“Still, investors are taking a cautious approach with the chances of being disappointed with lower-than-expected results from the ECB meeting,” added Kim. “They seem to be waiting to see what cards the ECB will come up with to rescue ailing countries like Spain.”
Foreigners scooped up a net 209.5 billion won worth of shares, extending the buying streak to five straight sessions.
Shares closed mixed. The world’s largest smartphone maker Samsung Electronics shrank 2.85 percent to 1,263,000 won but its smaller rival LG Electronics climbed 0.16 percent to 61,700 won.
Top automaker Hyundai Motor rose 0.42 percent to 238,500 won but its smaller affiliate Kia Motors retreated 0.51 percent to 77,800 won.
Steelmakers were bearish, with market leader POSCO losing 0.14 percent to 368,000 won, and Korea Zinc, the world’s No. 2 zinc smelter, slipped 0.13 percent to 372,000 won.
Mobile carriers were among the winners, with biggest carrier SK Telecom gaining 0.71 percent to 142,000 won and No. 3 player LG Uplus jumping 3.27 percent to 6,940 won.
The local currency closed at 1,131.7 won against the greenback, down 5.2 won from Wednesday’s close, as foreigners fled to safe-haven assets, dealers said. (Yonhap News)
