Seoul: South Korean stocks closed slightly higher Wednesday as investors searched for momentum ahead of U.S. corporate earnings and the Federal Reserve's rate decision. The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 7.8 points, or 0.25 percent, to close at 3,187.16.
According to Yonhap News Agency, trade volume was slim at 279.6 million shares worth 8.7 trillion won (US$6.27 billion), with losers outnumbering gainers 520 to 336. Foreign investors sold a net 203 billion won, while individual investors bought a net 60.7 billion won. Institutional investors offloaded a net 27.7 billion won.
Analysts indicated that investors were cautious, awaiting the second-quarter earnings of Nvidia, which could provide insight into the global artificial intelligence industry. Opinions were also split over the upcoming U.S. Federal Reserve meeting's potential outcomes.
"Amid the overall lack of momentum, investors are digesting existing issues, leading to fluctuations across different sectors," stated Lee Kyoung-min, an analyst at Daishin Securities. Key market player Samsung Electronics saw a rise of 0.43 percent to 70,600 won, whereas SK hynix, another major chipmaker, dropped 0.57 percent to 260,000 won.
In the chemical sector, shares showed a downward trend, with LG Chem decreasing by 1.04 percent to 286,500 won and SK Innovation falling 1.24 percent to 103,600 won. Hanwha Ocean increased by 2.88 percent to 110,900 won, and HD Hyundai Heavy Industries surged by 11.32 percent to 521,000 won, following reports of their potential involvement in a Canadian submarine project.
Naver, the leading portal operator in South Korea, saw a decline of 1.36 percent to 218,000 won, while its competitor Kakao reduced by 1.38 percent to 64,100 won. The local currency was quoted at 1,396.3 won against the U.S. dollar at 3:30 p.m., marking a decrease of 0.5 won from the previous session.