Investors still cautious ahead of Fed meeting
The benchmark Kospi gained 1.59 points, or 0.06 percent, to finish at 2,493.97. Trade volume was moderate at 6.39 trillion won ($5.99 billion).
Foreigners turned to net buyers following two consecutive sessions of sell-off, scooping a net 166.5 billion won, while institutions dumped a net 59.6 billion won. Individuals bought a net 1.2 billion won.
Analysts said investors became more cautious as the U.S. Federal Reserve is scheduled to make a decision on rate hikes next week. The central bank has announced plans to raise base rates at least three times this year.
“The Federal Open Market Committee is just a few days away. Investors are just stepping back and trying to watch the atmosphere before the meeting,” said Seo Sang-young from Kiwoom Securities.
“Also, political and diplomatic uncertainties rose high as U.S. President Donald Trump may soon fire his national security adviser, H.R. McMaster,” he added.
Large-cap shares finished in mixed territory across the board. Market bellwether Samsung Electronics fell 0.78 percent to 2,557,000 won, while chipmaker SK Hynix went up 0.22 percent to 89,800 won.
LG Chem, the largest chemical maker, dipped 1.31 percent to 413,500 won and Lotte Chemical slid 3.3 percent to 425,500 won.
Oil refineries were bearish, with industry leader SK Innovation dropping 0.71 percent to 208,500 won and No. 3 S-Oil skidding 0.83 percent to 119,500 won.
Lotte Shopping, the leading retailer, moved up 2.92 percent to 229,000 won and E-Mart, the largest outlet chain, advanced 1.77 percent to 287,000 won.
The secondary Kosdaq climbed 4 points, or 0.45 percent, to 894.43. Foreigners helped the tech-heavy market end in positive terrain as they became mass buyers of bio shares, moving the sector up by 1.2 percent.
Foreigners bought 109.6 billion won more stocks than they sold. Institutions and individuals were net sellers, offloading 70.3 billion won and 23.3 billion won each.
The local currency closed at 1,066.2 won against the U.S. dollar, up 0.8 won from the previous session.
Bond prices, which move inversely to yields, closed lower. The yield on three-year bonds gained 0.8 basis points to 2.28 percent, and the return on 10-year government bonds climbed 0.9 basis points to 2.71 percent.
BY KIM EUN-JIN, YONHAP [kim.eunjin1@joongang.co.kr]
with the Korea JoongAng Daily
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