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Kospi barely moves as investors wait for U.S. inflation data

Published: 10 Jul. 2024, 16:47

KIM JU-YEON
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,867.99 points on Wednesday, up 0.02 percent, or 0.61 points, from the previous trading session. [YONHAP]

Shares closed nearly flat Wednesday as investors sat on the sidelines ahead of the release of the latest U.S. inflation data that may give more clues on the future rate direction. The local currency fell in value against the dollar.

The Kospi inched up 0.61 points, or 0.02 percent, to 2,867.99.

Trade volume was moderate at 459 million shares worth 11.2 trillion won ($8 billion), with losers outnumbering gainers 432 to 423. Foreigners sold a net 599 billion won, while individuals bought a net 278 billion won. Institutions offloaded a net 307 billion won.

Analysts said investors took a wait-and-see approach as the United States is set to announce its consumer price index (CPI) for June on Thursday.

On Tuesday, U.S. Federal Reserve Chairman Jerome Powell also refrained from offering more hints of rate cuts during a congressional testimony, leaving the Fed's future moves uncertain.

"Investors may be induced to seek profit as they remain alert over the U.S. CPI as well as share prices of artificial intelligence-related firms," Han Ji-young, an analyst at Kiwoom Securities, said.

In Seoul, Samsung Electronics closed unchanged at 87,800 won, while SK hynix gained 0.21 percent to 239,000 won. LG Energy Solution shed 0.28 percent.

Auto shares closed mixed. Hyundai Motor stayed flat at 274,500 won and Kia dropped 0.41 percent to 122,000 won.

Steelmakers lost ground, with Posco Holdings losing 1.21 percent to 368,500 won and Korea Zinc decreasing 0.19 percent to 530,000 won.

Insurance firms, meanwhile, closed bullish, with Samsung Life Insurance rising 3.98 percent and Samsung Fire & Marine Insurance advancing 3.28 percent.

Hanwha Aerospace rose 1.79 percent to 256,500 won after the company announced that it has won a deal to supply K-9 self-propelled howitzers to Romania.

The local currency was trading at 1,384.7 won against the dollar as of 3:30 p.m., up 3.1 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 0.9 basis points to 3.12 percent, and the return on the benchmark U.S. 10-year government bonds added 1.7 basis points to 4.297 percent.

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