South Korean stocks closed 0.47 percent lower Tuesday ahead of U.S. Federal Reserve Chairman Ben Bernanke's speech on monetary policy slated for this week, analysts said. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 8.8 points to finish at 1,866.36. Trading volume was moderate at 300 million shares worth 2.9 trillion won (US$2.63 billion) with gainers outpacing losers 405 to 393.
Analysts said the market decline came as investors took a wait-and-see approach as Fed Chairman Bernanke will deliver his semi-annual testimony on monetary policy to the U.S. Congress on July 17-18.
"The anticipated testimony limited the investors' sentiment as Bernanke is expected to make a remark related to the Fed's exit from its stimulus plans," said Kim Sun-young, a researcher at IBK Investment & Securities Co.
Foreign investors purchased more shares than they sold at a net 19.8 billion won, and individuals also scooped up a net 68.8 billion won. Institutional investors, on the other hand, offloaded a net 90.5 billion won.
Tech shares led the decline, with leading Samsung Electronics losing 1.14 percent to 1,298,000 won and its domestic rival LG Electronics falling 1.8 percent to 71,000 won. Top flat panel maker LG Display shed 1.6 percent to 27,650 won.
Builders also lost ground, with No. 1 Hyundai Engineering & Construction moving down 0.35 percent to 57,200 won and KDB Daewoo Engineering & Construction falling 1.13 percent to 6,970 won. Daelim Industrial shed 0.6 percent. Top steelmaker POSCO shed 0.8 percent to 311,000 won.
Carmakers traded mixed, with Kia Motors falling 1.17 percent to 58,900 won, while its bigger affiliate Hyundai Motor gained 0.24 percent to 213,000 won. Top auto parts maker Hyundai Mobis lost 0.59 percent to 254,500 won.
The local currency ended at 1,118.00 won against the greenback, up 4.00 won from Monday's close as global investors' appetite for riskier assets increased, dealers said. (Yonhap News)
