SEOUL: South Korean stocks fell 0.51 percent on Monday as investors took to the sidelines ahead of a crucial policy meeting by the U.S. Federal Reserve on a rate hike later this week. The local currency gained ground against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 9.91 points to 1,931.46. Trading volume was slim at 359.48 million shares worth 4.09 trillion won (US$3.46 billion), with decliners outnumbering gainers at 519 to 297.
“The market remained bearish as investors kept a wait-and-see approach ahead of the FOMC meeting. Bearish moods in other Asian countries, including China and Japan, also intensified the overall market volatility,” said Bae Sung-young, a senior market analyst at Hyundai Securities Co.
The Federal Open Market Committee will meet on Thursday (local time) to determine whether to raise its near-zero interest rate for the first time in almost a decade, a decision being closely watched by investors around the world as it could set the tone for future market directions.
Foreign investors dumped nearly a net 60 billion won worth of shares, while institutions sold about a net 30 billion won worth of shares.
Brokerage firms lost marked ground, with KDB Daewoo Securities falling 4.02 percent to 11,950 won. Samsung Securities slid 3.24 percent to 46,350 won.
Builders also ended bearish. Hyundai Development fell 3.97 percent to close at 58,000 won.
Internet portal operator Naver dropped 2.56 percent to 476,000 won, while leading drugmaker Hanmi Pharm plunged 6.92 percent to 323,000 won.
