Seoul: Shares snap four-day rally on profit taking ahead of Fed statement

[SEOUL] South Korean shares snapped a four-session rally on Wednesday, dragged down by chemical and financial stocks on profit taking, as investors were cautious ahead of the outcome of a US Federal Reserve policy meeting.

The benchmark Kospi fell 7.66 points, or 0.31 per cent, to 2,435.92, logging its first decline after four sessions of gains to hit a near two-year high on Tuesday.

Foreigners were net buyers of US$147.35 million worth of shares on the main board.

Chemical shares declined 2.43 per cent, while an index of local brokerage shares fell 0.23 per cent.

There was some profit-taking after shares reached a peak, led by institutional investors, said Seo Jung-hun, an analyst at Samsung Securities.

Following robust data from China, investors are also focusing on the US Fed policy statement due later in the day, the first since chair Jerome Powell announced an increased tolerance for higher inflation.

The Kospi has risen 10.84 per cent so far this year, but gained 8.6 per cent in the previous 30 trading sessions.

REUTERS