SEOUL – South Korean stocks closed nearly flat on Friday, as investors adopted a cautious stance in anticipation of a crucial U.S. inflation report expected to influence the Federal Reserve's forthcoming rate decisions. The local currency experienced a decline against the U.S. dollar amid this watchful market atmosphere.
According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) saw a marginal increase of 0.81 points, or 0.03 percent, ending the session at 2,746.63. The trading volume was noted to be moderate, with a total of 485.5 million shares valued at approximately 11 trillion won (US$8.17 billion) changing hands. The day saw 603 stocks declining and 270 advancing, highlighting a mixed response from the market participants.
Foreign investors emerged as net buyers, acquiring 774.9 billion won worth of local shares, in contrast to institutional and individual investors who offloaded shares worth 282.6 billion won and 480 billion won, respectively. "With the U.S. stock market closed on Friday, investors here are keenly awaiting the U.S. personal consumption expenditures price index data," KB Securities analyst Kim Ji-won remarked. The PCE data, a measure closely watched by the Federal Reserve for insights on inflation, was scheduled for release later in the day.
In terms of sector performance, technology and biotechnology stocks experienced slight gains, while the automobile and battery sectors faced declines. Notable movements included Samsung Electronics rising by 1.98 percent and SK hynix by 2.69 percent. However, Hyundai Motor and LG Energy Solution saw decreases in their stock values, indicating a varied market reaction across different sectors.
The South Korean won closed at 1,347.2 against the U.S. dollar, slightly weaker than the previous session, while bond yields witnessed an uptick, indicating a decrease in bond prices.