Seoul shares end almost flat on steel gains, auto losses

(ATTN: ADDS bond yields at bottom)
By Lee Youkyung
SEOUL, Feb. 10 (Yonhap) -- South Korean stocks closed nearly unmoved Wednesday as
shares of automakers and air carriers fell, outweighing gains by steel makers and
financial issues, analysts said. The local currency rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) edged down 0.37 point, or
0.02 percent, to 1,570.12. Volume was moderate at 429 million shares worth 4.02
trillion won (US$3.46 billion) with losers outpacing gainers 385 to 379.
The Seoul bourse opened higher, tracking overnight bull runs in U.S. stock
markets, but then erased earlier gains and bobbed in and out of negative
territory.
"The rebound was not very strong," said Lee Jae-man, an analyst at Tongyang
Securities. "Uncertainties about the global economy are still lingering so the
foreign sell-offs are likely to continue."
Foreign and institutional investors cut their holdings of local shares while
retail investors were net buyers, lending support to the key index a day ahead of
the central bank's rate meeting.
Air carriers and automakers finished lower. Second-largest air carrier Asiana
Airlines, which reported an increased operating loss in fiscal 2009, fell 3.2
percent to 3,635 won while top automaker Hyundai Motor Co. closed 2.15 percent
lower at 114,000 won.
Steelmakers staged a bull run on expectations that global demand for steel will
pick up. POSCO, the world's fourth-largest steelmaker, gained 0.95 percent to
533,000 won, while its smaller rival Hyundai Steel added 0.5 percent to 81,000
won.
Financial shares, with two major financial firms expected to report their
fourth-quarter earnings after the closing bell, finished higher. KB Financial
Group, which has top lender Kookmin Bank under its wing, added 1.03 percent to
48,850 won and its smaller rival Woori Financial Holdings gained 1.89 percent to
13,500 won.
Tech shares closed mixed. Market heavyweight Samsung Electronics shed 0.79
percent to 755,000 won but LG Electronics, the world's third-largest handset
maker, surged 4.11 percent to 114,000 won on foreign buying.
The local currency closed at 1,160.30 won to the greenback, up 3.50 won from
Tuesday's close, as reports that indebted Greece would be rescued by European
governments increased investor appetite for risk, dealers said.
Bond prices, which move inversely to yields, closed mixed. The yield on the
benchmark three-year Treasury note remained unmoved at 4.27 percent, and the
return on five-year government bonds rose 0.01 percentage point to 4.83 percent.
ylee@yna.co.kr
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