Seoul: South Korean stocks closed slightly lower Wednesday as investors took to the sidelines amid the U.S. Federal Reserve's ongoing rate-setting meeting. The Korean won rose against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) lost 8.55 points, or 0.21 percent, to close at 4,135. Trade volume was moderate at 311.3 million shares worth 12.5 trillion won (US$8.5 billion). The KOSPI had opened higher but closed in negative territory after a choppy session, as retail investors turned net sellers, offloading 88.7 billion won.
Foreign investors were net buyers, scooping up 373.8 billion won, while institutional investors sold off a net 300.3 billion won. "Investors kept a watchful stance as they wait for the results of the Federal Open Market Committee (FOMC) meeting set to be announced tomorrow morning," Lee Kyoung-min, an analyst at Daishin Securities, said. Lee added that investors are betting on a December rate cut but are concerned the U.S. central bank could take a hawkish stance on additional rate reductions, as the Fed's policy makers remain sharply divided over the matter.
In Seoul, most large-cap shares closed lower. Market bellwether Samsung Electronics inched down 0.37 percent to 108,000 won, while its local chipmaking rival SK hynix advanced 3.71 percent to 587,000 won. Shares of SK hynix gathered ground after the company said it is exploring the potential listing of its treasury shares on the U.S. stock market via the issuance of American Depository Receipts.
Defense shares ended in negative territory amid signs of progress in peace negotiations in the Ukraine-Russia war. Hanwha Aerospace shed 3.85 percent to 923,000 won, while LIG Nex1 dipped 1.54 percent to 382,500 won. Hyundai Rotem slid 2.71 percent to close at 187,000 won.
Hybe Entertainment was among the winners, rising 2.75 percent to 299,000 won, as investors anticipated mega-hit boy band BTS will resume activities in 2026. The local currency was quoted at 1,470.4 won against the greenback as of 3:30 p.m., up 1.9 won from the previous session's close.