SEOUL: South Korean stocks closed nearly flat Wednesday as investors were disheartened by expectations that the U.S. Fed may raise a key interest rate in September, analysts said. The local currency lost against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 1.77 points, or 0.09 percent to 2,029.76. Trading volume was moderate at 312.46 million shares worth 4.98 trillion won (US$4.24 billion), with gainers outpacing losers 563 to 235.
Analysts said investor sentiment was dented by a possible U.S. rate hike, coupled with slowing manufacturers’ sentiment in China.
“Investors were spooked by the rising possibility of a U.S. rate increase in September,” said Kim Yong-gu, an analyst at Samsung Securities Co. “Thus, investors are moving to buy domestic-oriented shares rather than exporters.”
Foreigners sold more shares than they bought at 29.64 billion won, while retail investors sold a net 60.22 billion won. Institutions scooped up a net 18.8 billion won.
Carmakers ended mixed, with No. 1 Hyundai Motor adding 1.04 percent to 145,500 won and its auto parts arm, Hyundai Mobis, closing unchanged at 210,000 won. Kia Motors edged up 0.94 percent to 43,150 won.
Shipbuilders also closed mixed, with Hyundai Heavy Industries advancing 3.5 percent to 97,700 won and Samsung Heavy Industries falling 1.14 percent to 13,050 won. Daewoo Shipbuilding & Marine Engineering added 0.57 percent to 7,010 won.
Top mobile carrier SK Telecom decreased 2.35 percent to 249,500 won, while KT closed unchanged at 30,700 won. No. 3 LG Uplus added 5.6 percent to 12,250 won.
Builders traded higher, with Hyundai Engineering & Construction rising 1.33 percent to 34,750 won and Daewoo Engineering & Construction moving up 0.9 percent to 6,710 won. Daelim Industrial advanced 0.72 percent to 69,700 won.
The local currency ended at 1,173.60 won against the greenback, down 8.10 won from the previous trading session.
