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

The benchmark Korea Composite Stock Price Index edged up 0.07 percent, or 1.40 points, to finish at 1,981.82. Trading volume was low at 343 million shares worth 3.2 trillion won ($2.98 billion) with gainers outstripping losers 398 to 391.

“Local shares traded almost flat as the rising uncertainties in the U.S. fiscal cliff issue dented investor sentiment,” said Kwak Byung-ryeol, an analyst from Eugene Investment & Securities Co.

“The negotiations will resume after the Christmas holiday.”

“Meanwhile, reduced policy uncertainties following the result of the presidential election served as a positive boost for the local stock market,” Kwak added.

Foreign investors snapped up a net 226.6 billion won, while retail investors dumped a net 226.7 billion won. Institutions scooped up a net 14.6 billion won. (Yonhap News)