South Korean stocks closed flat Monday as investors took to the sidelines amid the prolonged concerns on the U.S. fiscal cliff, analysts said. The local currency gained against the U.S. dollar.

The benchmark Korea Composite Stock Price Index finished down 0.03 points to 1957.42. Trading volume was light at 361.6 million shares worth 3.6 trillion won ($3.3 billion) with losers outpacing gainers 460 to 364.

“Shares trading remained weak as investors took a wait-and-see approach following the protracted concerns on the U.S. fiscal cliff issue,” said Kim Ju-yong, an analyst at Bookook Securities Co.

“However, the Federal Open Market Committee meeting scheduled this week is expected to boost investor sentiment as it may come up with further stimulus measures.”

The FOMC could introduce new measures to replace the so-called Operation Twist, a program to sell short-term Treasury bonds and purchase the same amount of long-term securities, market watchers said. The program of swapping short for long-term debt is set to expire in December.

Meanwhile, shares of Samsung Electronics reached an all-time high of 1,506,000 won during the trading session. Its closing price stood at 1,491,000 won.

Foreigners scooped up a net 269.2 billion won worth of local shares, extending their buying streak for an eighth consecutive session. Institutions offloaded a net 244.8 billion won.

Other shares closed in mixed territory, with construction firms and brokerage houses leading the decline.

Construction firms lost ground, with No. 1 builder Hyundai Engineering & Construction falling 0.29 percent to 69,000 won, while Daewoo Engineering & Construction decreased 0.75 percent to 9,250 won.

Brokerage houses also closed lower, with Samsung Securities losing 0.99 percent to 50,100 won, while KDB Daewoo Securities fell 0.46 percent to 10,800 won.

In contrast, carmakers closed higher, with leading player Hyundai Motor increasing 0.66 percent to 227,500 won, while its smaller affiliate Kia Motors moved up 0.99 percent to 61,500 won.

The local currency ended at a 15 months high of 1,079.00 won against the greenback, up 2.7 won from Friday’s close, as local exporters decreased their dollar holdings. 

(Yonhap News)