S.Korean shares fall ahead of FOMC meeting

South Korean shares ended in negative territory Tuesday as investors are awaiting the Federal Open Market Committee (FOMC)'s meeting that will decide on its asset-purchasing program.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 6. 29 points, or 0.33 percent, to close at 1,925.68. Trading volume stood at 404.79 million shares worth 3.71 trillion won (3.53 billion U.S. dollars).

The Federal Reserve was widely expected to end its monthly bond- buying program by eliminating the remaining 15 billion U.S. dollars in the program.

The Fed will keep its benchmark interest rate on hold at a range of zero to 0.25 percent, but market players will focus on whether the Fed may hint at the timing of the first rate increase.

If the Fed ends the asset-purchasing program and drops the phrase of keeping the zero rate"for the considerable period of time"from the policy statement, investors'sentiment would worsen inevitably, market watchers said.

Foreigners reduced stock holdings by 140.7 billion won, but institutional investors turned into net buyers after selling shares earlier in the trading. Retail investors bought stocks worth 108.1 billion won.

Large-cap shares ended mixed. Top steelmaker POSCO declined 1.8 percent, and the No.2 carmaker Kia Motors lost 2.2 percent. The biggest automaker Hyundai Motor slid 1.4 percent and leading cosmetics maker Amore Pacific fell 0.9 percent.

Naver, the most-used search engine advanced 3.5 percent, and memory chip giant SK Hynix climbed 3.1 percent. Top life insurer Samsung Life Insurance and the biggest non-life insurer Samsung Fire & Marine rose 1.4 percent and 1.1 percent each on news that Lee Jae-yong, heir apparent of Samsung Electronics chairman Lee Kun-hee, is buying stakes on those insurance companies.

The South Korean currency finished at 1,049.7 won against the greenback, up 2.5 won from Monday's close.

Bond prices ended higher. Yields on the liquid three-year treasury notes fell 0.2 basis points to 2.217 percent, and the return on the benchmark 10-year government bonds lost 0.1 basis point to 2.719 percent.