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Seoul stocks trim earlier gains late Tue. morning on investor cautions

All News 11:47 June 09, 2020

SEOUL, June 9 (Yonhap) -- South Korean stocks trimmed earlier gains late Tuesday morning to trade a tad lower, with investors taking the sideline before the U.S. Fed's monetary policy meeting.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 0.93 points, or 0.04 percent, to 2,183.36 as of 11:20 a.m.

The stocks opened higher on large cap gains, buoyed by Wall Street gains stemming from hopes of a quick economic rebound.

Seoul court's rejection of an arrest warrant for the heir of Samsung Electronics, which accounts for more than 20 percent of the main index's total market cap, also gave a positive cue to investors.

The index snapped to erase most of the earlier gains, however, following reports of grim earnings forecasts for major South Korean companies.

The Federation of Korean Industries (FKI) forecast the top 100 firms' sales will decline by another 10 percent in the April-June period, largely due to lower demand from the United States, Europe and China in the face of the new coronavirus pandemic.

Investors also maintained a watchful eye on the upcoming U.S. Federal Open Market Committee (FOMC) meeting, set for June 9-10 (New York time).

"New York City's phase-one rollback of economic lockdowns have led to stock market rallies, yet investors seem more inclined to take a wait-and-see mode until the end of this week's FOMC meeting," Kiwoom Securities analyst Seo Sang-young said.

Large caps traded mixed.

Samsung Electronics gained 0.18 percent, while No. 2 chipmaker SK hynix slipped 0.55 percent.

Top pharmaceutical firm Samsung Biologics climbed 1.81 percent, with leading chemical maker LG Chem retreating 0.92 percent.

The local currency was trading at 1,198.65 won against the U.S. dollar, up 6.15 won from the previous session's close.


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