South Korean shares finished almost flat on Wednesday as Federal Reserve Chair Janet Yellen expressed worries over overvalued stocks and hinted at an earlier-than-expected rate hike while concerns over corporate earnings continued at home, analysts said. The local currency fell to its lowest in over two months against the U.S. dollar.

The benchmark Korea Composite Stock Price Index rose 0.76 point to 2,013.48 after swerving in and out of negative terrain. Trading volume was moderate at 311 million shares worth 3.89 trillion won ($3.77 billion), with losers outpacing gainers 465 to 333.

Yellen told the Senate Banking Committee on Tuesday (Washington time) that the Fed will keep benchmark interest rates low for a considerable time but said the rates could be hiked sooner than expected should the job market continue to improve.

“South Korea’s stock market also faces continued fund redemptions, forcing institutional investors to sit on the fence, or sell shares,” said Bae Sung-young, an analyst at Hyundai Securities. “Also, investors are worried about corporate earnings, which further weigh on the market.”

Analysts said there are some positive factors for the local market, however, which may help the index creep up down the road.

The new South Korean finance minister said he would adopt “expansionary” policy to spur on Asia’s fourth-largest economy, and the country’s central bank left room for a rate cut by saying downside risks for the country’s economy were greater than upside ones. (Yonhap)