Seoul shares fall for 3rd day after Fed's rate cut

Seoul shares closed lower Thursday as investors were divided over the US Federal Reserve's latest rate-setting meeting. The local currency fell against the US dollar.

After choppy trading, the benchmark Korea Composite Stock Price Index fell 24.38 points, or 0.59 percent, to close at 4,110.62.

Trade volume was high at 534 million shares worth 20 trillion won ($13.5 billion), with gainers outpacing 549 to 325.

Foreigners bought a net 346 billion won worth of local shares, and individuals scooped up a net 403 billion won. Institutions offloaded a net 771 billion won.

Following the two-day meeting, the Federal Open Market Committee decided to lower the key rate by 0.25 percentage point to the 3.5-3.75 percent range.

During a press conference, Fed Chair Jerome Powell said that the rate adjustments since September have brought the central bank's monetary policy "within a broad range of estimates of its neutral value" and that it is "well positioned to wait and see how the economy evolves."

"With the Federal Reserve limiting its rate cut to just one next year, the market felt a sense of burden," said Seo Sang-young, an analyst at Mirae Asset Securities.

Top cap Samsung Electronics fell 0.65 percent to 107,300 won, while LG Energy Solution added 1.02 percent to 446,000 won.

SK hynix sank 3.75 percent to 565,000 won after the Korea Exchange, the bourse operator, issued an investor warning for the stock following its recent sharp gains. Investors are banned from purchasing companies under the advisory through margin trading.

Builders gained ground, with Hyundai Engineering & Construction rising 2.51 percent to 73,600 won and GS Engineering & Construction increasing 1.97 percent to 19,630 won.

The local currency was quoted at 1,473 won against the greenback at 3:30 p.m., down 2.6 won from the previous session. (Yonhap)