(2nd LD) Seoul stocks end almost flat as investors weigh Fed's first rate hike in 3 yrs

Seoul stocks ended virtually unchanged on Thursday, after a day of trading that saw investors grapple with the Federal Reserve's first rate hike in over three years. The Korean won weakened against the U.S. dollar. Opening higher, the KOSPI finished 0.04 percent lower at 6,715.41. Throughout the session, the index traded in a narrow range as investors remained on the sidelines, awaiting further cues from the Federal Reserve.

Analyst Lee Kyoung-min from Daishin Securities noted that investor sentiment remained cautious, as oil prices had recently increased, showing signs of a slowdown. U.S. President Donald Trump had recently expressed optimism about an end to the Iran conflict during a press conference. Brent crude futures fell nearly 3 percent, settling around $105 per barrel.

The trading volume for the day was relatively light, amounting to 197.2 million shares, valued at 15.5 trillion won. Foreign investors were net sellers, offloading 2.27 trillion won, while domestic retail and institutional investors collectively bought shares worth 572.48 billion won. The semiconductor sector experienced a decline, while defense and shipping sectors saw gains.

Samsung Electronics dropped 0.39 percent to 252,500 won, while SK hynix fell 0.8 percent to 1,745,000 won. Hanwha Aerospace and HD Hyundai Heavy Industries, both in the defense sector, rose by 3.98 percent and 6.58 percent respectively. As of 3:30 p.m., the Korean won was quoted at 1,382.2 won per U.S. dollar, down 13.6 won from the previous trading session.

Bond prices, inversely related to yields, closed mixed; the yield on three-year Treasurys rose 1 basis point to 4.063 percent, whereas the return on benchmark five-year government bonds declined 2.6 basis points to 4.262 percent.