Seoul shares down 0.48 pct ahead of ECB meeting

South Korean stocks closed 0.48 percent lower Thursday as investors took a breather ahead of a monetary policy meeting of the European Central Bank (ECB), analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 9.63 points to finish at 2,004.04. Trading volume was moderate at 306.8 million shares worth 3.61 trillion won ($3.41 billion) with losers outpacing gainers 547 to 248.

Analysts said Seoul shares lost ground as investors sat on the sidelines ahead of the ECB's policy-setting meeting slated for Thursday evening (Seoul time) amid the mixed outlook over the bank's stance on its policy rate.

In May, the ECB lowered the policy rate to 0.5 percent in a bid to provide more liquidity to its market and lend hands to its stagnant economy, adding the bank is ready to cut the rate again if necessary.

"Investors also took a wait-and-see approach to the United States' gross domestic product for the third quarter, and its jobs data for October," said Lim Noh-joong, a researcher at I'M Investment & Securities Co.

Beijing's policy-setting meeting slated for Nov. 9-12, during which the world's No. 2 economy is expected to roll out reform measures to tackle inflation, also weighed down investors' sentiment, analysts added.

Foreigners sold more shares than they bought at a net 64 billion won, while retail investors scooped up a net 173.6 billion won. Institutions sold a net 105.7 billion won.

No. 1 carmaker Hyundai Motor added 1.6 percent to 254,000 won amid the rising hope its labor union will nominate a dovish candidate as the new head.

Labor disputes at Hyundai Motor have been an almost annual event in the past two decades. Its workers have downed tools every year since 1986 except for in 1994, 2009, 2010 and 2011.

Tech shares lost ground, with market behemoth Samsung Electronics falling 0.96 percent to 1,437,000 won and its local rival LG Electronics losing 2.06 percent to 66,600 won. Flat panel maker LG Display decreased 1.86 percent to 23,750 won.

Logistics closed lower, with Hyundai Merchant Marine falling 0.39 percent to 12,900 won and CJ Korea Express losing 1.15 percent to 86,100 won. Top air carrier Korean Air lost 0.6 percent to 33,150 won.

Brokerage houses also traded bearish, with Samsung Securities moving down 0.32 percent to 46,100 won and KDB Daewoo Securities falling 0.31 percent to 9,680 won. Hyundai Securities shed 1.58 percent to 6,230 won.

The local currency ended at 1,061.40 won against the greenback, down 0.50 won from the previous trading session, dealers said.

South Korea's stock market opened at 10:00 a.m. and closed at 4:00 p.m., an hour later than usual, due to the national college entrance exam. The foreign exchange market closed at 3:00 p.m. as usual. (Yonhap News)