Seoul: Seoul stocks ended the trading day nearly unchanged on Thursday as investors weighed the Federal Reserve's first rate hike in over three years. The Korean won weakened against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) closed down by 2.56 points, or 0.04 percent, at 6,715.41 after opening higher. The index experienced volatile trading throughout the day as investors remained cautious following the Fed's decision to increase the base rate by a quarter of a percentage point.
Lee Kyoung-min, an analyst at Daishin Securities, noted that the market impact was limited since the rate hike was widely anticipated. Investor sentiment stayed relatively moderate as the recent surge in oil prices appeared to have eased.
In related news, U.S. President Donald Trump mentioned on Wednesday that the United States and Iran are "hopefully towards the end of the war," based on information received directly from Tehran, though he did not provide further details.
Brent crude futures, the international oil benchmark, fell nearly 3 percent on Thursday, trading around US$105 per barrel.
The trading volume was light, with 197.2 million shares worth 15.5 trillion won (US$11.2 billion) changing hands. Advancing stocks outnumbered declining ones, with 450 gainers against 398 losers.
Foreign investors were net sellers, unloading 2.27 trillion won worth of shares. In contrast, retail and institutional investors bought a combined net 572.48 billion won.
The semiconductor sector lost ground, while defense and shipping companies were among the gainers. Top-cap Samsung Electronics saw a decline of 0.39 percent to 252,500 won, and SK hynix fell 0.8 percent to 1,745,000 won. In contrast, Hanwha Aerospace rose 3.98 percent to 1,097,000 won, and HD Hyundai Heavy Industries surged 6.58 percent to 469,500 won.
The Korean won was quoted at 1,382.2 against the greenback as of 3:30 p.m., marking a decrease of 13.6 won from the previous trading session. Bond prices closed mixed, with the yield on three-year Treasurys rising by 1 basis point to 4.063 percent, while the return on five-year government bonds fell 2.6 basis points to 4.262 percent.