Roundup: S. Korean shares slide ahead of Fed's rate decision

South Korean shares ended in negative territory on Monday ahead of the U.S. Federal Reserve's decision on policy rate that has been kept at the zero level since the 2008 global financial crisis.

The benchmark Korea Composite Stock Price Index (KOSPI) slid 9. 91 points, or 0.51 percent, to close at 1,931.46. Trading volume stood at 359.48 million shares worth 4.09 trillion won (3.46 billion U.S. dollars).

The KOSPI took a strong start, but turned downward as investors refrained from raising stock holdings on worries that the Fed may increase the zero-level policy rate for the first time in about seven years.

The Fed will hold its regular rate-setting meeting for two days from Wednesday, leading investors in the South Korean stock market to take a wait-and-see stance ahead of the rate decision.

Market watchers forecast that foreign investors were expected to continue to sell local stocks before uncertainties about the U. S. rate decision disappear.

South Korea's finance ministry said in a report to the parliament that the Fed was expected to raise interest rates within this year and volatility in the global financial market became stronger amid the devaluation of the Chinese currency. The ministry picked the two risk factors as major risks facing the South Korean economy.

Foreign investors reduced stock holdings by 58 billion won, keeping a selling trend for 28 straight sessions. Local financial institutions sold shares worth 31 billion won, but retail investors bought stocks worth 50 billion won.

Large-cap shares ended mixed. Market bellwether Samsung Electronics rose 0.8 percent, and the state-run power supplier Korea Electric Power Corp. gained 1.3 percent, and top life insurer Samsung Life Insurance advanced 2.4 percent.

The biggest automaker Hyundai Motor lost 1 percent, and memory chip giant SK Hynix slid 1.1 percent. Leading cosmetics maker Amore Pacific dipped 0.3 percent.

The South Korean currency finished at 1,183.1 won against the greenback, up 1.4 won from Friday's close.

Bond prices ended lower. Yields on the liquid three-year treasury notes rose 1.2 basis point to 1.667 percent, and the return on the benchmark 10-year government bonds gained 3.3 basis points to 2.270 percent. Endi