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South Korean shares closed nearly flat while the South Korean won fell by a whisker on Thursday, with broader market activity seen subdued ahead of the European Central Bank’s (ECB) policy decision later in the day.
The Korea Composite Stock Price Index (KOSPI) ticked down 0.02 per cent to close at 1,920.82 points.
The local currency was quoted at 1,084.9 to the dollar at the conclusion of onshore trade, compared with 1,084.8 at the end of Wednesday’s session.
Sources told Reuters that the ECB’s executive board has proposed an asset-purchase programme that would enable the ECB to buy €50 billion ($58 billion) in bonds per month starting in March.
“The ECB’s stimulus action by itself could only have a limited impact on shares if it doesn’t support a bullish turnaround in commodity market sentiments... a recovery in oil prices is crucial,’’ said Kim Joong-won, a market strategist at Meritz Investment & Securities.
Battered energy counters outperformed as crude prices snapped a two-day skid, buoyed by hopes that a slew of investment cuts by global oil companies would bring an end to the supply glut afflicting the market.
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