SEOUL: South Korean stocks reached their lowest level in ten months on Tuesday, as investors held back in anticipation of the Federal Reserve's policy meeting set for later this week. Meanwhile, the South Korean won edged higher against the U.S. dollar.
According to Yonhap News Agency, investors during the session also closely watched Samsung's conference call and manufacturing and service data from China.
The Korea Composite Stock Price Index (KOSPI) declined by 32.56 points or 1.41 percent, closing at 2,277.99. This represents the lowest closing figure since January 5, when it was at 2,264.65. The trading volume for the day stood at a moderate 387.6 million shares, valued at 8 trillion won (US$5.95 billion). On this trading day, the number of stocks that lost value surpassed those that gained, with the ratio standing at 639 to 252.
Investor attention is mainly fixed on the Federal Reserve's upcoming policy meeting, where it is expected that key interest rates will remain stable. All eyes are on Federal Reserve Chairman Jerome Powell for indications regarding the future direction of the bank's policies.
Foreign investors offloaded a net 324 billion won in local shares, while individual investors bought a net 341 billion won. Institutions sold off 69 billion won in shares. Among the significant corporate movements, tech major Samsung Electronics saw its shares fall by 0.59 percent to 66,900 won, attributed to an almost 80 percent drop in its third-quarter operating profit, even as its semiconductor arm managed to curtail losses.
In addition, the battery-making sector recorded a downturn, triggered by Tesla's performance. LG Energy Solution, an industry leader, fell by 4.81 percent to close at 385,500 won, while its smaller competitor, Samsung SDI, lost 5.86 percent to end at 425,500 won. Steel companies also had a bearish day. POSCO Holdings slipped by 4.97 percent to 411,500 won, and Korea Zinc declined by 4.29 percent to 469,000 won.
Conversely, cosmetic companies experienced an uptick based on reports suggesting that these firms would be increasing their product prices. AmorePacific surged by 11.07 percent to 126,400 won, and LG Household and Health Care gained 1.45 percent, closing at 315,500 won.
The local currency closed at 1,350.50 won against the U.S. dollar, a 0.4 won increase compared to the previous session. Bond prices ended mixed, with the yield on three-year Treasurys falling by 0.4 basis point to 4.085 percent, and the yield on five-year government bonds slightly rising by 0.2 basis point to 4.203 percent.