Seoul shares close nearly flat ahead of US inflation data


Seoul shares ended the day nearly unchanged on Wednesday as investors adopted a cautious stance ahead of the release of the latest US inflation data, which is expected to provide insight into potential future interest rate movements. The local currency depreciated against the US dollar. The benchmark Korea Composite Stock Price Index (KOSPI) edged up by a marginal 0.02 percent, closing at 2,867.99. Trading activity saw 459 million shares worth 11.2 trillion won ($8 billion), with decliners outnumbering advancers at 432 to 423. Foreign investors sold a net 599 billion won, while individuals purchased a net 278 billion won. Institutions were net sellers of 307 billion won. Market analysts noted that with the imminent release of the US consumer price index (CPI) for June, investors adopted a cautious stance, particularly after Federal Reserve Chairman Jerome Powell refrained from providing explicit hints about potential interest rate adjustments during a recent congressional testimony. Looking ahead, there is anticipation for potential profit-seeking behavior among investors who remain vigilant about the US CPI and the performance of artificial intelligence-related companies. In terms of local stock performances, Samsung Electronics closed unchanged at 87,800 won, while SK hynix saw a modest gain of 0.21 percent to 239,000 won. Conversely, steelmakers such as Posco Holdings and Korea Zinc experienced declines, while insurance firms, including Samsung Life Insurance and Samsung Fire & Marine Insurance, demonstrated bullish trends. Additionally, Hanwha Aerospace saw an increase of 1.79 percent to 256,500 won following an announcement about securing a deal to supply K-9 self-propelled howitzers to Romania. The local currency closed at 1,384.7 won against the US dollar, marking a decrease of 3.1 won compared to the previous session's close.


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