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

Seoul stocks ended near unchanged on Thursday, following a modest decline, as investors absorbed the Federal Reserve's first interest rate hike in three years. The Korean won weakened against the U.S. dollar. Opening higher, the KOSPI finished 2.56 points, or 0.04 percent, lower at 6,715.41 points. Throughout the day, the index experienced erratic trading as traders remained cautious following the Fed's decision to raise the benchmark rate by 0.25 percentage points.

However, the market's reaction was muted, as the hike was anticipated. Analyst Lee Kyoung-min from Daishin Securities noted that investor sentiment remained relatively subdued, with recent surges in oil prices easing. On Wednesday, U.S. President Donald Trump announced that the United States and Iran were "hopefully towards the end of the war," having spoken directly with Iranian officials.

Brent crude futures declined nearly 3 percent on Thursday, settling around $105 per barrel. Trading volume was light, with 197.2 million shares traded, worth 15.5 trillion won ($11.2 billion). Out of 645 traded stocks, 450 fell while 398 rose. Foreign investors were net sellers, offloading 2.27 trillion won. Retail and institutional investors, however, bought a combined net 572.48 billion won.

In tech, semiconductors lagged behind, with Samsung Electronics and SK hynix both declining. Among winners, defense and shipping sectors led the way, with Hanwha Aerospace and HD Hyundai Heavy Industries both posting gains. The Korean won closed at 1,382.2 won per U.S. dollar, down 13.6 won from the previous session.