South Korean stocks closed 0.93 percent higher Tuesday amid the divided outlook over the United States Federal Open Market Committee (FOMC) meeting slated for this week, analysts said. The local currency fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 17.52 points to close at 1,900.62. Trading volume was low at 275.3 million shares worth 3.38 trillion won (US$2.99 billion) with gainers outpacing losers 529 to 298.
The index returned above the 1,900-point mark after closing at 1,882.73 on Thursday. It moved in a tight range throughout the day as investors remained mixed on the scheduled U.S. policy meeting, market watchers said.
"Investors took a wait-and-see approach on the FOMC meeting as it will decide whether to maintain the country's quantitative easing moves," said Kim Sun-young, a researcher at IBK Investment & Securities Co.
"Meanwhile, it is likely that the FOMC will come up with a market-friendly decision considering the country's low consumer price and weak jobs data," Kim added.
U.S. stocks also gathered ground Monday on the market outlook that the FOMC will maintain its current quantitative easing moves, with the Dow Jones Industrial Average adding 0.73 percent and the tech-laden NASDAQ composite index falling 0.83 percent.
Foreigners offloaded 157.9 billion won worth of local equities, marking the eighth straight session of a selling spree. Retail investors sold a net 46.9 billion won, while institutional investors scooped up a net 202.5 billion won.
Tech shares gathered ground, with Samsung Electronics rising 1.54 percent to 1,387,000 won and its smaller rival LG Electronics adding 3.99 percent to 75,500 won. Top chipmaker SK hynix climbed 4.27 percent to 31,750 won.
Carmakers also traded higher, with No. 1 player Hyundai Motor rising 3.81 percent to 204,500 won and its affiliate Kia Motors advancing 2.8 percent to 58,700 won. Auto parts maker Hyundai Mobis gained 2.09 percent to 268,500 won.
Kumho Investment Bank moved up by its daily permissible limit of 14.93 percent to 1,155 won as Woori Finance Holdings, the biggest finance group by asset, decided to acquire shares in the company.
STX Pan Ocean, the shipping unit of cash-strapped STX Group, plunged by its daily permissible limit of 14.81 percent to 2,185 won after the firm filed for court receivership.
Mobile carriers traded lower, with leading SK Telecom losing 0.46 percent to 218,000 won and KT falling 0.66 percent to 37,900won. LG Uplus, the smallest player, shed 2.32 percent to 12,650 won.
Builders also closed bearish, with Daelim Industrial falling 0.44 percent to 91,500 won and Daewoo Engineering & Construction losing 2.09 percent to 7,500 won.
The local currency ended at 1,131.10 won against the greenback, down 4.90 won from Monday's close amid rising concerns over a possible reduction in the U.S, stimulus moves, dealers said. (Yonhap News)
