Kospi sags as investors wait and see about Fed

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Kospi sags as investors wait and see about Fed

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Korea’s main bourse closed mildly lower Wednesday as investors took to the sidelines amid concerns over trade talks between the United States and China, and uncertainty over an upcoming Fed meeting, analysts said. The won gained ground against the dollar.

The benchmark Kospi was down 0.52 point, or 0.02 percent, to finish at 2,177.1. Trading volume was light at 313 million shares worth 4.1 trillion won ($3.6 billion), with losers outnumbering gainers 532 to 281.

Foreigners offloaded a net 123.5 billion won worth of local shares, while retailers and institutions picked up shares worth 86.8 billion won and 37.3 billion won, respectively.

The Seoul index opened lower, tracking Wall Street losses, and fluctuated throughout the session to end up extending its losing run for two consecutive sessions.

Market watchers said investors awaited the outcome of the Fed meeting to see whether the U.S. central bank will affirm its commitment to the current monetary policy, coupled with uncertainties surrounding an ongoing trade deal between Washington and Beijing.

“Today’s Kospi showed a downward movement ahead of the FOMC and wait-and-see stance amid uncertainties surrounding the U.S.-China trade talks,” said Lee Young-gon, a researcher from Hana Financial Investment, forecasting the index to move in a tight range.

Most large-cap shares on the Seoul bourse were mixed.

Tech blue chips rose on investors’ bargain hunting, with Samsung Electronics adding 0.34 percent to 44,050 won. The Korean tech giant announced a business plan during a shareholder meeting earlier in the day, with a focus on 5G and artificial intelligence.

Leading chipmaker SK Hynix rose 3.68 percent to end at 70,500 won.

Mobile carriers, however, moved down, with No. 1 player SK Telecom falling 0.79 percent to 251,000 won and the second-largest carrier KT decreasing 0.35 percent to 28,150 won. LG U+, the smallest carrier, dropped 1.32 percent to 15,000 won.

Leading chemical firm LG Chem skidded 1.76 percent to 363,000 won, and top steelmaker Posco decreased 1.16 percent to 256,500 won.

The Kosdaq gained 0.85 point, or 0.11 percent, to finish the session at 749.76. The won finished at 1,130.40 won against dollar, down 0.2 won from the previous session.

Bond prices, which move inversely to yields, ended lower. The yield on three-year bonds added 0.3 basis points to reach 1.813 percent, and the return on 10-year bonds gained 0.2 basis points to reach 1.981 percent.


BY KO JUN-TAE, YONHAP [ko.juntae@joongang.co.kr]
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