SEOUL – South Korean stocks closed slightly lower on Wednesday, with investors adopting a cautious stance in anticipation of the central bank's upcoming rate decision. Meanwhile, the local currency strengthened against the U.S. dollar.
The Korea Composite Stock Price Index (KOSPI) saw a modest decline of 1.95 points, or 0.08 percent, ending the day at 2,519.81. Trading volume was moderate, with 571.6 million shares traded, amounting to a total of 9.27 trillion won (approximately US$7.19 billion). The market witnessed more losers than winners, with 598 stocks declining compared to 272 gaining.
According to Yonhap News Agency, institutional investors led the downtrend by selling a net 140.9 billion won worth of shares. Conversely, foreign investors and individuals were net buyers, purchasing 72.9 billion won and 70.5 billion won worth of stocks, respectively.
Analysts, including Choi Yoo-jun from Shinhan Securities, observed that investors were holding off on making significant moves until the Bank of Korea's decision on the key interest rate and the release of U.S. personal consumption expenditure inflation data for October, both due on Thursday. This cautious approach contributed to the subdued market atmosphere.
Among major stocks, the performance was mixed. Market leader Samsung Electronics remained unchanged at 72,700 won, while LG Electronics, a key home appliance manufacturer, saw its shares decline by 1.05 percent, closing at 103,400 won.
Banking stocks also experienced a downturn, with Hana Financial Group and KB Financial Group decreasing by 0.84 percent and 1.34 percent, respectively. The gaming sector also witnessed declines, with NCSOFT and Netmarble falling by 0.57 percent and 1.51 percent, respectively.
In contrast, battery manufacturers recorded gains. LG Energy Solution saw its stock rise by 2.76 percent to 447,000 won, and POSCO Future M surged by 7.55 percent, closing at 327,500 won.
The South Korean won strengthened against the U.S. dollar, ending the session at 1,289.6 won per dollar, up 4.1 won from the previous day's close.