South Korean stocks closed almost flat Monday after swerving in and out of positive terrain, as retail investors sold shares to take their profit from recent gains, analysts said. The local currency rose against the U.S. dollar.

The Korea Composite Stock Price Index shed 0.65 points, or 0.03 percent, to finish at 2,036.59. Trading volume was moderate at 308.6 million shares worth 4.6 trillion won ($4.12 billion), with gainers outnumbering decliners 432 to 366.

Analysts said market uncertainties have waned as the U.S. Federal Reserve indicated in its policy statement last week that it won't speed up the pace of lifting the borrowing cost. 

The Fed remark will send local stocks up for the time being, analysts added, as it will spur more stable foreign capital inflows, helped by better global liquidity conditions that stem from other stimulus measures led by the eurozone and China.

"We have the European Central Bank pumping in 30 billion euros a month from March, with Beijing expected to roll out an additional stimulus since growth is slowing," said Rhoo Yong-seok, an analyst at Hyundai Securities Co.

A selling binge by individuals who went engaged in profit-taking erased the KOSPI's earlier gains. They sold more shares than they bought at 114 billion won.

Offshore investors, in contrast, snapped up local equities worth a net 135 billion won, extending the buying streak for the seventh consecutive session.

Large caps ended mixed across the board. Market bellwether Samsung Electronics finished up 0.2 percent to 1,467,000 won, while Hyundai Motor dropped 1.1 percent to 179,000 won.

Chip giant SK hynix, the third-largest listed firm by market cap, rose 2.77 percent to 48,150 won, with top Internet portal operator Naver jumping 4 percent to 680,000 won.

The local currency ended at 1,114.60 won against the greenback, up 8.4 won from Friday's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys shed 0.4 basis point to 1.793 percent and the return on the benchmark five-year government bonds fell 0.9 basis points to 1.891 percent. (Yonhap)