SEOUL: South Korean stock fell 0.54 percent Monday as foreign investors continued to dump local stocks ahead of a rate-setting meeting of the U.S. Federal Reserve next week. The local currency lost ground sharply against the U.S. dollar.
The benchmark Korea Composite Stock Price Index lost 10.73 points to 1,963.67. Trade volume was slim at 375 million shares worth 3.35 trillion won ($2.87 billion), with decliners beating winners 527 to 293.
“The market wants to see the result of the Fed meeting, although the U.S. central bank has hinted at a rate hike,” said Bae Sung-young, a senior researcher at Hyundai Securities Co. “Investors will likely take such a wait-and-see stance for the remainder of the week.”
U.S. Fed Chair Janet Yellen said earlier that she was “looking forward” to the U.S. interest rate rise for the first time in a decade at its key meeting next week.
Foreigners continued to offload local stocks extending their selling streak to a fourth straight session to lead the decline. They dumped a net 148.2 billion won worth of local shares.
Tech shared went south, with market bellwether Samsung Electronics losing 0.55 percent to 1,262,000 won and chipmaker SK hynix falling 1.6 percent to 30,700 percent.
Top automaker Hyundai Motor skidded 0.66 percent to 150,500 won and its sister Kia Motors retreated 0.74 percent to 53,900 won.
Petrochemical shares were among the biggest losers as the world’s biggest crude oil cartel failed to agree on an oil output cut late last week. Industry leader LG Chem slid 0.81 percent to 306,500 won and Lotte Chemical sank 2.07 percent to 236,500 won.
Korea Electric Power Corp., the country’s state-run power supplier, dipped 0.94 percent to 47,500 won and KOGAS dropped 0.27 percent to 37,050 won.
