Korean shares closed almost unchanged Friday, while foreign investors continued to offload local shares ahead of what many believe is an imminent U.S. rate hike. The local currency slightly gained ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) added 0.89 point, or 0.05 percent, to 1,947.67. Trading volume was slim at 383 million shares worth about 4.4 trillion won ($3.69 billion). Gainers outpaced decliners 467 to 340.


The index showed range-bound movements throughout the day, starting slightly higher from the previous session's close.

Local analysts said the looming U.S. rate hike and the strengthening of the U.S. dollar may have prompted foreign investors to dump risky assets.

"We may very well expect similar movements until the U.S. Federal Reserve's rate-setting meeting next month, though foreigners may begin to sell more local shares should the Korean won continue to weaken against the U.S. dollar," Bookook Securities analyst Kim Sung-hwan said.

Foreign investors offloaded a net 127 billion won worth of local shares, with retail investors also dumping a net 63.54 billion won. Institutions purchased a net 151.62 billion won.

Large market caps closed mixed.

Market bellwether Samsung Electronics shed 0.08 percent to 1,269,000 won, with top automaker Hyundai Motor plunging 1.86 percent to 132,000 won.

Samsung C&T, a fashion and overseas trading affiliate of Samsung, spiked 2.56 percent to 120,000 won, while leading chemicals maker LG Chem advanced 1.29 percent to 274,500 won.

The local currency closed at 1,190.20 won against the U.S. greenback, up 1.50 won from the previous session's close. (Yonhap)