SEOUL: South Korean stocks ended 0.14 percent lower Monday as investors were cautious over the central bank’s upcoming rate decision and the unrelenting Middle East Respiratory Syndrome (MERS) outbreak, analysts said. The local currency lost ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.91 points to 2,065.19. Trading volume was moderate at 388.47 million shares worth 5.53 trillion won (US$4.93 billion), with gainers beating decliners 459 to 351.
Analysts said the KOSPI lost ground as investors sat on the sidelines ahead of Thursday’s rate-setting meeting by the Bank of Korea (BOK).
“Investors took a wait-and-see approach due partly to the upcoming rate-setting meeting,” said Kim Hyung-ryeol, an analyst at Kyobo Securities Co.
The BOK is widely expected to lower the nation’s key interest rate to a record low of 1.5 percent in June to cope with the country’s slumping exports.
In addition, the fast-spreading respiratory disease had an adverse affect on the local stock market.
“Investors are jittery over the ongoing MERS situation, which doesn’t seem to be improving at the moment,” Kim said. “Some large-cap shares took a hit from those concerns.”
As of Monday morning, South Korea reported its sixth death from the acute respiratory illness, along with 23 new cases, bringing the total number of people diagnosed to 87.
