Seoul: Seoul stocks ended nearly flat on Thursday as investors evaluated the implications of the Federal Reserve's first interest rate hike in more than three years. The Korean won weakened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) opened higher but closed down by 2.56 points, or 0.04 percent, at 6,715.41, following a day of choppy trading. Investors remained cautious after the Fed raised the U.S. base rate by a quarter of a percentage point, a move that was largely anticipated by the market.
Lee Kyoung-min, an analyst at Daishin Securities, noted that the impact of the rate hike on the market was limited due to its expected nature. "Investor sentiment remained relatively mild as a recent rise in oil prices appears to have slowed down," Lee commented.
In related news, U.S. President Donald Trump mentioned on Wednesday that the United States and Iran could be "hopefully towards the end of the war," claiming to have received direct communication from Tehran, although he did not provide further details. Meanwhile, Brent crude futures, the global oil benchmark, fell nearly 3 percent to approximately US$105 per barrel on Thursday.
The day's trade volume was relatively light, with 197.2 million shares changing hands, valued at 15.5 trillion won (US$11.2 billion). The number of gainers surpassed losers, with 450 stocks rising compared to 398 falling.
Foreign investors were net sellers, divesting 2.27 trillion won, while retail and institutional investors collectively purchased a net 572.48 billion won. Among industry sectors, semiconductors experienced losses, whereas defense and shipping stocks registered gains.
Samsung Electronics, the top-cap stock, fell by 0.39 percent to 252,500 won, and SK hynix declined by 0.8 percent to 1,745,000 won. Conversely, Hanwha Aerospace, a defense industry leader, rose by 3.98 percent to 1,097,000 won, and shipbuilder HD Hyundai Heavy Industries surged by 6.58 percent to 469,500 won.
The Korean won was quoted at 1,382.2 won against the U.S. dollar as of 3:30 p.m., marking a decrease of 13.6 won from the previous trading session.