Seoul: Shares end flat ahead of Fed meeting outcome
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SOUTH Korean shares ended flat on Wednesday (Jul 27) as investors awaited the US Federal Reserve’s monetary policy meeting outcome, and refrained from making bets. The Korean won weakened, while the benchmark bond yield fell.
The benchmark Kospi ended up 2.57 points or 0.11 per cent at 2,415.53, reversing an early loss of 0.69 per cent. The index rose, marginally, for the third straight session and marked the highest close since Jun 28.
Unless the Fed meeting outcome turns out be too hawkish or companies post very weak earnings, the stock market should be fine, Mirae Asset Securities analyst Seo Sang-young said. The Fed is expected to raise its benchmark overnight interest rate by 75 basis points to a target range of 2.25 per cent to 2.5 per cent at the end of a 2-day policy meeting on Wednesday.
Among heavyweights, technology giant Samsung Electronics inched up 0.16 per cent, while peer SK Hynix fell 0.5 per cent after the chipmaker warned demand was likely to slow in the second half as customers brace for a possible recession. LG Energy Solution ended slightly lower by 0.13 per cent after the battery maker posted a drop in operating profit for the second quarter, mainly due to the base effect from last year’s one-off gain.
Of the total traded issues of 926 on the benchmark index, the number of advancing shares was 492.
Foreigners were net sellers of 118.3 billion won (S$125 million) worth of shares on the main board.
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The won was quoted at 1,313.3 per dollar on the onshore settlement platform, 0.43 per cent lower than its previous close.
In offshore trading, the won was quoted down 0.2 per cent at 1,313.2 per dollar, while in non-deliverable forward trading its 1-month contract was quoted at 1,312.2.
In money and debt markets, September futures on 3-year treasury bonds rose 0.04 point to 105.15 in late afternoon trade.
The most liquid 3-year Korean treasury bond yield fell by 0.1 basis point to 3.119 per cent, while the benchmark 10-year yield fell by 2.4 basis points to 3.16 per cent. REUTERS
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