Stocks Creep Up, Awaiting the Fed

Seoul stocks registered modest gains for a third trading session but investors remained cautious, awaiting the U.S. Federal Reserve's decision at its Tuesday meeting on whether to cut interest rates again.

The Korea Composite Stock Price Index closed Monday at 584.08, up 1.02 points, or 0.2 percent. Trade volume was 527 million shares, valued at 1.77 trillion won ($1.36 billion).

Foreign investors sold both on the spot and futures market and institutional investors also unloaded their shares, while retail investors were net buyers.

Key blue chips were mixed. Samsung Electronics squeezed out a marginal gain of 0.5 percent, to close at 221,500 won. Pohang Iron & Steel climbed 2.2 percent to 98,100 won. SK Telecom was down 1.4 percent to 218,000 won. Korea Telecom declined 2 percent to 60,000 won, and Korea Electric Power Corp. also shed 2 percent, ending at 22,600 won.

Hynix Semiconductor soared by the daily limit of 15 percent, to finish at 4,640 won, on the news that the debt-ridden chipmaker found a foreign investor to buy $200 million of depository receipts. Daewoo Motor Sales reached the daily ceiling again on optimism that negotiations with General Motors Corp. to buy Daewoo Motor Co. will be soon finished.

A total of 31 shares rose by the daily limit. Seven issues fell by the daily limit. Gaining shares led losers 516 to 278.

The Kosdaq composite index added 1.21 points, or 1.5 percent, to close at 82.93.

Trade volume was 472 million shares; the daily turnover was 2.53 trillion won. Foreign and retail investors purchased, while institutional investors sold.

Index heavyweight telecommunication and dot-com shares were mixed. Korea Telecom Freetel lost 1.2 percent, ending at 43,650 won. LG TeleCom and Hanaro Telecom surged by the Kosdaq daily limit of 12 percent.

Serome Technology gained 3.6 percent, finishing at 21,500 won. Haansoft climbed 1.3 percent to 6,220 won.

A total of 43 issues jumped by the daily limit and seven hit the downward limit. Advancing shares outnumbered decliners 330 to 231.

by Moon So-young