Seoul: South Korean stocks traded lower late Wednesday morning, driven by losses of large-cap semiconductor shares, as investors moved to lock in profits from recent gains awaiting the Federal Reserve's interest rate decision. The benchmark Korea Composite Stock Price Index (KOSPI) had shed 33.34 points, or 0.97 percent, to 3,416.28 as of 11:20 a.m.
According to Yonhap News Agency, the index opened lower, tracking overnight losses on Wall Street, and had fallen further on heavy selling by foreign investors. The KOSPI had rallied in recent sessions, with the index reaching a record high for the fifth consecutive day Tuesday, closing at 3,449.62. The Federal Reserve is widely expected to cut its benchmark interest rate on Wednesday (U.S. time) for the first time this year.
Market bellwether Samsung Electronics saw a decline of 1.76 percent, and chip giant SK hynix retreated 3.45 percent. Defense giant Hanwha Aerospace dipped 1.15 percent, and major bio company Samsung Biologics lost 0.68 percent. Power plant manufacturer Doosan Enerbility tumbled 3.16 percent, and internet portal operator Naver went down 1.06 percent.
In the shipbuilding sector, HD Hyundai Heavy shed 0.4 percent, while Hanwha Ocean surged 1.53 percent. Top automaker Hyundai Motor experienced a slight increase of 0.23 percent, but its sister affiliate Kia lost 0.49 percent. Among gainers, leading battery maker LG Energy Solution rose 1.29 percent, and major chemical firm LG Chem advanced 1.74 percent.
No. 1 financial firm KB Financial Group edged up 0.08 percent, and leading steelmaker POSCO Holdings advanced 0.71 percent. The local currency was trading at 1,380.85 won against the U.S. dollar at 11:20 a.m., down 1.95 won from the previous session.