[THE INVESTOR] South Korean stocks fell for five straight sessions on June 15 as sentiment was down on the possibility over Britain leaving the European Union. Investors were also sitting on the sidelines ahead of the Federal Reserve‘s rate decision. The Korean won fell slightly against the U.S. dollar.
The benchmark Korea Composite Stock Price Index lost 3.2 points, or 0.16 percent, to close at 1,968.83. Trade volume was at 371.5 million shares worth 4.49 trillion won ($3.82 billion), with losers beating winners 461 to 324.
Traders monitor stock prices at a local bank. Yonhap
The U.S. central bank’s two-day policy meeting has been underway since June 14. A rate decision is slated for later today. Analysts said there is a slim chance of a rate hike due to lingering worries over the global economy, especially at a time when concerns are rising over Britain’s possible exit from the EU in a June 23 referendum.
Morgan Stanley Capital International‘s June 14 decision not to add Seoul to its developed market index had no impact on local stocks. The MSCI also did not include domestic Chinese stocks to one of its key benchmarks.
“Investors will keep an eye on the Federal Reserve‘s meeting to find clues on the July rate decision and its view on the global economy,” Kim Sung-hwan, an analyst at Bookook Securities, told the local media.
Foreigners and institutions offloaded a net 74.69 billion won and 144.08 billion won, respectively, while retail investors bought a net 166.56 billion won.
Tech shares were among the biggest gainers.
Samsung Electronics gained 2.32 percent to 1,412,000 won, and
SK hynix scored 3.1 percent to 29,950 won. Auto stocks were mixed. Top automaker
Hyundai Motor slipped 3.35 percent to 57,700 won, while its auto parts unit Hyundai Mobis jumped 4.94 percent to 265,500 won.
Korea Electric Power Corp., the state-run power provider, shed 3.35 percent to 57,700 won after the government on Tuesday announced plans to restructure state energy firms.
The local currency closed at 1,173.3 won against the U.S. dollar, down 0.1 won from the previous session’s close.
Bond prices closed mixed. The yield on three-year Treasury added 0.2 basis point at 1.339 percent, and the return on the benchmark five-year government bond declined 0.7 basis point to 1.409 percent.
(theinvestor@heraldcorp.com)
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