Stocks flat as rate concerns hang over the market

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Stocks flat as rate concerns hang over the market

Published: 21 Feb. 2023, 18:04 Updated: 21 Feb. 2023, 19:39

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,458.96 points on Tuesday, up 3.84 points, or 0.16 percent, from the previous trading day. [NEWS1]

Stocks finished slightly higher Tuesday as traders remained uncertain about how aggressive the U.S. Federal Reserve will be in raising interest rates to fight inflation. The local currency fell against the dollar.

The benchmark Kospi gained 3.84 points, or 0.16 percent, to close at 2,458.96 won.

Trading volume was moderate at 486.86 million shares worth 7.21 trillion won ($5.56 billion), with gainers outpacing decliners 549 to 323.

The index had fluctuated between positive and negative territory in the morning after opening marginally lower. It remained above the flatline in the afternoon session.

Investors are closely watching the future monetary policy paths of the Federal Reserve and the Bank of Korea, as recent data showed stubbornly high inflation, which fuels concerns about their continued push for aggressive monetary tightening.

Institutions sold a net 92.46 billion won worth of shares, while foreign and retail investors bought a net combined 52.69 billion won.

U.S. financial markets were closed Monday for Presidents Day.

On Friday, Wall Street ended mixed as stronger-than-expected U.S. inflation readings and a low unemployment rate reinforced investor fears that the Fed might raise borrowing rates more aggressively to bring down persistently high inflation.

In Seoul, most big-cap stocks ended mixed.

Samsung Electronics fell 0.96 percent to close at 62,100 won, and chip maker SK hynix lost 1.41 percent to 91,200 won.

Samsung Biologics lost 0.62 percent to 800,000 won, and Celltrion fell 1.4 percent to 154,800 won.

Hyundai Motor ended flat at 178,200 won.

Among gainers, battery maker LG Energy Solution rose 0.78 percent to 520,000 won, and LG Chem gained 3 percent to 687,000 won.

The local currency finished at 1,295.9 won against the dollar, up 1.4 won from the previous session's close.

The Kosdaq gained 4.53 points, or 0.57 percent, to close at 793.42.

Bond prices, which move inversely to yields, closed higher. The yield on three-year government bonds shed 3.7 basis points to 3.624 percent, and the return on the benchmark 10-year government bonds fell 4.0 basis points to 3.820 percent.

BY SOHN DONG-JOO,YONHAP [sohn.dongjoo@joongang.co.kr]