SEOUL: South Korean stocks ended 0.06 percent lower Tuesday as investors took a wait-and-see stance ahead of the MSCI’s decision on whether to include Chinese stocks in its emerging market index, a move that could spark outflows of money from here, analysts said. The local currency gained ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 1.16 points to 2,064.03. Trading volume was moderate at 417.64 million shares worth 5.54 trillion won (US$4.95 billion), with gainers beating decliners 523 to 297.
“The market was volatile in early trading but moved in a narrow range mostly throughout the day, with some large-cap shares, including Samsung Electronics, falling ahead of the MSCI’s decision to be announced early tomorrow morning,” said Bae Sung-young, an analyst at Hyundai Securities.
Global index provider MSCI will announce whether to include part of mainland Chinese shares in its emerging market index. Experts noted that the inclusion may lead to some foreign capital outflows from the Korean market to China.
Market bellwether Samsung Electronics weighed on the market by losing 2.44 percent to 1,282,000 won. Flat-panel maker LG Display fell 2.25 percent to 28,200 won.
Major financial shares also ended in negative terrain with No. 1 insurer Samsung Fire & Marine Insurance dropping 2.8 percent to 104,000 won.
Telecom issues, however, closed higher with mobile carrier SK Telecom jumping 2.86 percent to 251,500 won.
Builders apparently benefited from growing expectations that the central bank could lower its key interest rate during a meeting scheduled on Thursday.
