SEOUL: South Korean stocks closed 0.3 percent higher Wednesday on eased uncertainties over the U.S. Federal Reserve’s upcoming policy meeting, analysts said. The local currency finished nearly unchanged against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 6.14 points to 2,034.86. Trading volume was moderate at 339.6 million shares worth 5.03 trillion won (US$4.5 billion), with gainers beating decliners 565 to 246.
Analysts said the gain came as retail investors and institutions scooped up shares ahead of the U.S. Federal Open Market Committee (FOMC) meeting slated for Thursday, amid expectations that monetary policymakers may take a less-hawkish-than-expected stance.
But the rise was limited due to concerns about the country’s declining exports and the outbreak of Middle East Respiratory Syndrome (MERS) that has claimed 20 lives and sickened 162 people so far.
“Should the outcome of the FOMC meeting turn out to be positive for the market, foreigners may also stop dumping their shares, which could help the KOSPI to enjoy a relief rally,” said Bae Sung-young, an analyst at Hyundai Securities Co.
Market watchers, however, cautioned that the upward momentum will be weak considering the current economic conditions at home.
“There is still the downtrend in the country’s exports, and consumer sentiment has also been dented due to the ongoing MERS outbreak, so the market is not likely to see any strong upward movements,” Bae said.
Foreigners sold off a net 152.59 billion won, and retail investors scooped up a net 64.77 billion won. Institutions bought more shares than they sold at 91.12 billion won.
Tech shares closed mixed, with leading Samsung Electronics slipping 0.08 percent to 1,254,000 won, while top chipmaker SK hynix advanced 1.7 percent to 44,950 won. Flat screen maker LG Display fell 0.19 percent to end at 26,350 won.
