Seoul stocks snap 4-day losing streak ahead of Fed policy meeting

SEOUL– Seoul stocks ended their four-day losing streak on Tuesday as investors scooped up oversold stocks ahead of the Fed’s policy meeting later this week. The Korean won rose against the U.S. dollar.

After opening higher, the benchmark Korea Composite Stock Price Index (KOSPI) stayed in positive terrain, closing at 2,367.85, up 12.19 points, or 0.52 percent.

Trading volume was light at 407.9 million shares worth 6.9 trillion won (US$4.96 billion) with decliners outnumbering gainers 654 to 198.

“Tuesday’s rebound came as investors took a cue from overnight gains on Wall Street, but they seemed to have kept a wait-and-see stance ahead of the FOMC meeting this week,” said analyst Kim Dae-jun of Korea Investment & Securities.

Foreigners and retail investors went on a selling mode, offloading 77 billion won and 224.9 billion won worth of shares, respectively. Institutional investors scooped up a net 283.3 billion won.

In Seoul, most large-cap shares ended lower, led by a decline in chip stocks.

Market bellwether Samsung Electronics inched down 1.06 percent to 55,800, while rival SK hynix dipped 2.2 percent to a market close of 88,000 won.

Battery maker LG Energy Solutions added 1.26 percent to 483,500 won, while LG Chem slid 0.79 percent to close at 630,000 won.

Airlines ended higher after U.S. President Joe Biden said the COVID-19 pandemic is over. Top national flag carrier Korean Air Lines shares added 3.19 percent to 25,850 won, while Asiana Air advanced 3.55 percent to end at 14,600 won.

The local currency ended at 1,389.5 won against the U.S. dollar, up 4.1 won from Monday session’s close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 6.4 basis points to 3.823 percent and the return on the benchmark five-year government bonds added 4.8 basis points to 3.83 percent.

Source: Yonhap News Agency

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