SEOUL: South Korean stocks ended 0.91 percent lower Wednesday as foreigners dumped their holdings ahead of an upcoming Fed meeting, analysts said. The Korean won gained against the U.S. dollar after hitting a fresh two-year low in the previous session.
The benchmark Korea Composite Stock Price Index (KOSPI) tumbled 18.89 points to 2,064.73. Trading volume was significantly heavy at 1.1 billion shares worth 6.7 trillion won (US$5.8 billion), with decliners dwarfing gainers 548 to 256.
Wednesday’s trading volume marks a near three-year high since 1.2 billion shares on Sept. 26, 2012, when retail investors scurried to bet on shares linked to South Korea’s presidential candidates ahead of the presidential election in December.
Analysts said investors remained jittery, waiting for clues to the timing of the U.S. Federal Reserve’s expected rate hike and second-quarter earnings results.
“The market is trying to digest when the Fed will raise U.S. interest rates. Also, in the short term, investors seemed to be concerned about corporate earnings,” said Kang Hyun-gie, an analyst at Dongbu Securities Co.
The Federal Reserve is scheduled to hold its two-day Federal Open Market Committee policy meeting next week, while KOSPI bellwethers started to release their earnings for the April-June period.
Tech companies mostly led the losses. Samsung Electronics slipped 0.79 percent to 1,253,000 won and chip giant SK hynix fell 2.18 percent to 38,200 won.
Cosmetics firms also ended in negative territory after the Middle East Respiratory Syndrome (MERS) outbreak pummeled their sales to foreign tourists. AmorePacific slumped 2.85 percent to 391,500 won and LG Household & Health Care retreated 3.12 percent to 714,000 won.
