SEOUL– South Korean stocks closed more than 1 percent lower Wednesday as investors seek clues on the timeline for the tapering with the U.S. Federal Reserve meeting this week in focus. The Korean won fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 37.78 points, or 1.25 percent, to close at 2,975.71 points.
Trading volume was moderate at about 649 million shares worth some 12.3 trillion won (US$10.4 billion), with losers outnumbering gainers 684 to 187.
Foreigners sold a net 449 billion won, while retail investors bought 845 billion won. Institutions offloaded a net 422 billion won.
The key stock index retreated as investors took to the sidelines on expectations that the Fed may hasten its timeline for potential rate hikes to vent the rising inflation pressure.
The Fed is set to reveal its meeting results Wednesday (New York time).
“Investors seem to be bracing for a hawkish announcement (from the Fed),” said Eugene Investment & Securities analyst Huh Jae-hwan.
A slump in techs, chemicals and autos led the overall market decline.
Market bellwether Samsung Electronics lost 1.54 percent to 70,400 won, No. 2 chipmaker SK hynix decreased 1.86 percent to 105,500 won, and internet portal operator Naver lost 1.83 percent to 402,500 won.
Leading car battery firm LG Chem dipped 5.66 percent to 784,000 won, and Hyundai Motor, the country’s largest carmaker, retreated 0.71 percent to 208,500 won. Pharmaceutical giant Samsung Biologics closed unchanged at 874,000 won.
Kakao Pay, the mobile payment service arm of Kakao Corp., South Korea’s top messenger app, closed at 193,000 won on its first day of trading, more than doubling its initial public offering (IPO) price of 90,000 won.
The local currency closed at 1,181.6 won against the U.S. dollar, down 7.2 won from the previous session’s close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 0.2 basis point to 2.036 percent, while the return on the benchmark five-year government bond fell 1.2 basis points to 2.289 percent.
Source: Yonhap News Agency