Seoul: Stocks close flat ahead of Fed decision

South Korean shares closed almost flat on Wednesday (Nov 2) as investors remained cautious ahead of a Federal Reserve policy decision where the US central bank is expected to deliver another 75-basis point rate hike. The Korean won closed little changed, while the benchmark bond yield fell.

The benchmark Kospi rose 1.65 points or 0.07 per cent to 2,336.87.

Among heavyweights, technology giant Samsung Electronics fell 0.67 per cent and peer SK Hynix gained 0.72 per cent, while battery maker LG Energy Solution advanced 1.07 per cent.

Investors are waiting to see the results of the Federal Open Market Committee meeting, so many remained in a wait-and-see mode, while foreign inflows continued, said Seo Jung-hun, an analyst at Samsung Securities.

The trading volume during the session in the Kospi index was 443.79 million shares. Of the total traded issues of 931, the number of advancing shares was 394.

Foreigners were net buyers of shares worth 494.8 billion won (S$493 million) on the main board.

The won was quoted at 1,417.4 per dollar on the onshore settlement platform, 0.01 per cent lower than its previous close at 1,417.2.

In offshore trading, the won was quoted at 1,417.5 per dollar, down 0.1 per cent from the previous day, while in non-deliverable forward trading its one-month contract was quoted at 1,416.9.

The Kospi has fallen 21.52 per cent so far this year, and lost 2 per cent in the previous 30 trading sessions.

The won has lost 16.1 per cent against the dollar so far this year.

In money and debt markets, December futures on three-year treasury bonds fell 0.19 point to 102.27.

The most liquid three-year Korean treasury bond yield rose by 3.8 basis points to 4.122 per cent, while the benchmark 10-year yield fell by 0.9 basis point to 4.162 per cent. REUTERS

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