Awaiting the Fed, Trading Is Quiet

Seoul stocks closed mixed and nearly unchanged Friday, as investors were cautious on Wall Street's overnight mixed performances. The main board slipped, while the Kosdaq market squeezed out a marginal gain.

"Investors would be reluctant to make any major movement until they see how aggressively the U.S. Federal Reserve will cut interest rates in next week's meeting," an analyst at Daishin Securities said.

The Korea Composite Stock Price Index lost 3.16 points, or 0.58 percent, to close at 538.67. Trade volume was thin at 333 million shares. The value of the traded stocks was 1.49 trillion won ($1.16 billion).

Most of the core blue chips lost. Samsung Electronics shed 0.77 percent, ending at 194,500 won. Hyundai Electronics Industries declined 0.79 percent to 3,140 won.

Korea Electric Power Corp. was down 1.50 percent to 23,000 won. SK Telecom slipped 0.49 percent to 205,000 won. Korea Telecom lost 2.83 percent, to close at 58,300 won.

As an exception, Pohang Iron & Steel Co. climbed 2.09 percent to 92,600 won, on purchases by foreign investors.

Despite the general weakness of index heavyweight shares, advancing issues outnumbered decliners 434 to 337, because retail investors rushed to small and medium-cap shares. Twenty-two issues jumped by the daily limit of 15 percent and seven shares hit the downward limit.

The Kosdaq composite index closed at 71.38, up 0.14 points or 0.20 percent. Trade volume was down to 323 million shares, valued at 1.62 trillion won, as investors withdrew to the sidelines.

A total of 38 issues touched the daily ceiling, while six shares hit the floor. Gaining issues led losers 319 to 242.

by Moon So-young