Stocks close slightly higher as investors seek bargains ahead of Fed meeting

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Stocks close slightly higher as investors seek bargains ahead of Fed meeting

Published: 30 Oct. 2023, 16:47

KIM JU-YEON
[email protected]

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,310.55 points on Monday, up 0.34 percent, or 7.74 points, from the previous trading session. [YONHAP]

Shares closed slightly higher Monday as investors scooped up bargains ahead of the U.S. Federal Reserve's policy meeting this week, analysts said. The local currency closed higher against the dollar.

The Kospi gained 7.74 points, or 0.34 percent, to close at 2,310.55.

Trading volume was moderate at 437 million shares worth 6.82 trillion won ($5 billion), with gainers outnumbering losers 593 to 281.

Shares rebounded later in the session, after opening lower, as investors sought bargains following last week's significant drop.

The rebound was limited, however, as investors also awaited possible hints from Federal Reserve Chairman Jerome Powell about future monetary policy this week.

"Investors sat on the sidelines as they awaited the Fed meeting and South Korea's export data, along with the U.S. manufacturers' index," said Kim Seok-hwan, an analyst at Mirae Asset Securities.

Kim added that geopolitical issues from the Middle East also induced investors to take a wait-and-see stance.

Foreigners dumped a net 63.3 billion won worth of local shares, and retail investors sold a net 26.1 billion won. Institutions bought a net 43.3 billion won.

Samsung Electronics and SK hynix closed unchanged from the previous session at 67,300 won and 119,100 won, respectively.

Battery makers were among the winners, with LG Energy Solution rising 1.25 percent to 405,000 won.

Posco Holdings advanced 2.36 percent to 433,000 won, and Korea Zinc gained 5.15 percent to 490,000 won.

Carmakers finished bearish, with Hyundai Motor decreasing 1.77 percent to 172,500 won and Kia falling 2.01 percent to 78,100 won.

Financial shares also lost ground, as some investors speculated that the country may adopt a so-called windfall tax for the banking sector amid high borrowing costs. KB Financial lost 2.67 percent to 51,100 won, and Shinhan Financial slipped 2.57 percent to 34,100 won.

The local currency ended at 1,350.90 won against the dollar, down 5 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 2.3 points to 4.10 percent, and the return on the benchmark U.S. 10-year government bond fell 0.6 points to 4.84 percent.

BY KIM JU-YEON, YONHAP [[email protected]]