South Korean stocks shed 0.16 percent Thursday as the U.S. Federal Reserve hinted at a potential rate hike within the year, analysts said. The local currency fell against the U.S. dollar.
  

The benchmark Korea Composite Stock Price Index decreased 3.36 points to 2,049.41. Trading volume was moderate at 336.8 million shares worth 3.92 trillion won ($3.44 billion), with winners outpacing losers 404 to 390.
  

Fed Chair Janet Yellen said Wednesday (U.S. time) the central bank has not yet decided whether to seek a rate hike in December, which is interpreted by market watchers as increasing the likelihood of such a move.
  

"The market expected the rate hike delay in October. The possibility for a hike in December has risen this month," said Ko Seung-hee, an analyst at KDB Daewoo Securities Co. "Thus, the local stock market will trade bearish for the time being."
  

Foreigners offloaded a net 30.1 billion won, while institutions bought a net 45.3 billion won. Institutions sold a net 127 billion won.
 

Shipbuilders finished in negative terrain, with Hyundai Heavy Industries decreasing 1.87 percent to 99,600 won and Samsung Heavy Industries plunging 3.64 percent to 13,250 won. Daewoo Shipbuilding & Marine Engineering also lost 2.2 percent to 6,680 won.
  

Carmakers also finished lower, with No. 2 player Kia Motors falling 1.39 percent to 56,900 won. No. 1 Hyundai Motor closed unchanged at 165,500 won. Hyundai Mobis, the country's biggest auto parts maker, shed 0.2 percent to 252,000 won.
  

Steelmakers were also among the major losers, with No. 1 POSCO losing 0.27 percent to 187,000 won and Korea Zinc moving down 1.04 percent to 476,000 won. No. 2 steelmaker Hyundai Steel dropped 0.55 percent to 53,800 won.
  

Tech shares traded higher, with market behemoth Samsung Electronics rising 0.9 percent to 1,342,000 won and top chipmaker SK hynix advancing 0.15 percent to 32,650 won.
  

Mobile carriers closed mixed, with SK Telecom falling 0.22 percent to 230,500 won. No. 2 KT increased 0.68 percent to 29,550 won, and LG Uplus climbed 2.79 percent to 11,050 won.
  

The local currency ended at 1,138.50 won against the greenback, down 6.5 won from Wednesday's close. (Yonhap)