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Seoul: Stocks dip as investors take profits on Fed fears; won inches up

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[SEOUL] South Korean shares dropped to a one-week intraday low early on Wednesday with investors taking profits as market jitters over the US Federal Reserve's pending rate increase grew.

The Korea Composite Stock Price Index (Kospi) was down 1.4 per cent at 2,008 points as of 0217 GMT.

"There is no decisive reason for today's fall. Fed December rate hike expectations in the market are spurring investors to take profits before the shares drop even more as the policy meeting gets closer," said Kang Hyun Gie, a stock analyst at Dongbu Securities.

He added that similar sudden falls in stocks may happen from time to time until the Fed raises rates.

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Offshore investors were poised to be net sellers, offloading 56 billion Korean won (S$68.75 million) worth of Kospi shares near mid-session.

LG Display Co Ltd said its third-quarter operating profit beat expectations and it expects a strong October-December quarter, though its shares lost one per cent on profit-taking.

Carmaker Hyundai Motor Co was down 1.4 per cent.

Decliners outnumbered advancers 659 to 162.

The South Korean won inched up as the Chinese yuan recovered to pressure the US dollar. It reached 1,131.3, up 0.2 per cent versus Tuesday's close of 1,133.5 to the US dollar.

December futures on three-year treasury bonds shed 0.01 point to 110.42.

REUTERS

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