Shares fall as investors await hints from the Fed

Shares closed lower as investors awaited the results of the U.S. Federal Reserve's meeting. The Kospi and Kosdaq both fell, and foreigners dumped a net 130 billion won.

Screens in Hana Bank's trading room in central Seoul show the Kospi closing at 2,510.66 points on Wednesday, down 0.97 percent, or 24.61 points, from the previous trading session. [NEWS1]

Shares closed lower Wednesday as investors sat on the sidelines ahead of the release of the U.S. Federal Reserve's meeting results. The local currency fell in value against the dollar.

The Kospi fell 24.61 points, or 0.97 percent, to close at 2,510.66, ending its three-day advance.

The Kosdaq dropped 10.22 points, or 1.22 percent, to close at 829.31.

Trade volume was low at 367 million shares worth 7.32 trillion won ($5.45 billion), with losers outpacing winners 596 to 270.

Foreigners sold a net 130 billion won, while institutions bought a net 94.3 billion won. Retail investors offloaded a net 1.8 billion won.

Seoul shares kicked off slightly lower as the United States announced an on-year inflation figure of 3.1 percent for November, which fell in line with the market estimate.

The index further lost ground as investors cautiously awaited hints as to the direction future of U.S. monetary policy from the Federal Open Market Committee (FOMC) meeting.

“While the U.S. consumer price index for November met expectations, the FOMC meeting is set to serve as a turning point for the market,” said Han Ji-young, an analyst from Kiwoom Securities.

Samsung Electronics fell 0.95 percent to 72,800 won while SK hynix gained 0.15 percent to 131,200 won.

Battery makers lost ground, with LG Energy Solution losing 3.42 percent to 410,000 won, and Samsung SDI shedding 3.59 percent to 429,500 won.

Chemical shares closed lower as well, with SK Innovation falling 1.87 percent to 131,100 won and S-Oil dropping 0.75 percent to 66,500 won.

Defense shares also dropped amid concerns that Poland may scrap arms deals with Korea. Hanwha Aerospace fell 2.87 percent to 125,000 won, and Hyundai Rotem dropped 3.72 percent to 25,850 won.

Posco Holdings fell 3.21 percent to 453,000 won.

The local currency closed at 1,319.9 won against the dollar, up 5.9 won from the previous session's close.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year government bonds rose 1.9 points to 3.465 percent, and the return on the benchmark U.S. 10-year government bonds fell 3.3 points to 4.202 percent.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]