Seoul shares end flat amid global trade tensions

All News 16:06 October 16, 2018

SEOUL, Oct. 16 (Yonhap) -- South Korean stocks ended volatile trading unchanged from the previous session Tuesday amid lingering global trade tension and geopolitical risks in the Middle East. The local currency firmed against the U.S. dollar.

The benchmark Korea Composite Stock Price Index ended the day at 2,145.12. Trading volume was low at 215.1 million shares worth 3.81 trillion won (US$3.37 billion), with gainers overwhelming decliners 566 to 270.

The bourse was volatile throughout the day, alternating between gains and losses before ultimately returning to where it started.

Investors were trying to gauge the direction of third-quarter earnings of major companies, and awaiting the minutes of the U.S. Federal Reserve's latest policy meeting due Wednesday.

"Investors seem to remain on edge ahead of the U.S. interest rate hike and concerns over geopolitical uncertainties in the Middle East," said Seo Sang-young, an analyst at Kiwoom Securities.

Foreigners and institutions sold a net 65.9 billion won and 126.89 billion won worth of local stocks, respectively, while retail investors scooped up a net 181.79 billion won to moderate the losses.

Tech shares backtracked after their U.S. rivals on Wall Street retreated the previous day on worries over their earnings.

Market bellwether Samsung Electronics shed 0.46 percent to 43,600 won, and SK hynix, a major chipmaker, decreased 0.85 percent to 69,700 won.

Refiners were depressed as Iran's crude exports fell further ahead of U.S. sanctions against Tehran in November, while diplomatic disputes that may spill over into economics remain over a missing Saudi journalist.

SK Innovation, the nation's largest refiner, lost 0.7 percent to 213,500 won, and No. 3 S-Oil backtracked 1.17 percent to 126,500 won.

In contrast, auto shares rebounded from recent losses.

Industry leader Hyundai Motor gained 2.64 percent to 116,500 won, and its sister company Kia Motors moved up 0.64 percent to 31,300 won, after sinking nearly 7 percent the previous day.

The South Korean currency closed at 1,128.0 won against the U.S. dollar, up 6.3 won from Monday's close.