Seoul shares fell on Friday for a third consecutive session, led by stocks that gained sharply this year such as Shinpan Financial Group, as investors worried a recent record-setting rally may have pushed prices too high.
Samsung Electronics Co Ltd erased gains to end unchanged at 562,000 won, despite issuing an optimistic outlook, as investors fretted over its earnings growth potential.
"After the recent strong rise, the market could be stuck in a boxed range," said Kim Young-ill, chief investment officer at KB Asset Management.
Local shares fell 0.9 percent for the week, marking their second consecutive weekly decline. The main index hit an all-time high on October 5.
Samsung Electronics Co Ltd, the world's top maker of memory chips and flat panels, reported on Friday a 30 percent drop in quarterly profits, in line with expectations. The stock rose as much as 1.4 percent after Samsung said profits would improve on the back of flat screen and mobile phone sales, but later pared gains to end flat. "Expectations about Samsung's outlook are still low," said KB Asset's Kim.
Financial stocks, which have been among the sharpest gainers this year, were among the day's biggest declines. Shinpan Financial Group, the country's second-biggest banking group, fell 1.43 percent to 34,500 won, while Samsung Fire and Marine Insurance Co Ltd fell 1.72 percent to 97,300 won.
Top local automata Hyundai Motor Co slid 0.78 percent to 76,400 won, while Hyundai Heavy Industries Co dropped 3.62 percent to 74,500 won.
Highness Semiconductor Inc fell 1.89 percent to 23,350 won, a day after reporting third-quarter net profit came in well above expectations, and amid worries its earnings had peaked. SK Corp, the country's top oil refiner, fell 1.98 percent to 54,500 won amid caution over refining margins after US crude futures slipped overnight.
On the upside, shares in LG Electronics Inc rose 1.84 percent to 72,000 won after Samsung Electronics said it sold a record number of mobile phones in the latest quarter and predicted a similar number of sales in the current quarter.
LG, the world's fourth-biggest handset maker, is set to report its quarterly earnings on Tuesday.
LG.Philips LCD, the world's second-biggest maker of flat screens, rose 0.49 percent to 40,900 won after Samsung also forecast brisk demand for flat screens.
Worries about weakening flat screen prices in the fourth quarter had sent shares in LG.Philips LCD nearly 10 percent lower over the past three sessions after it reported its third-quarter earnings on Tuesday.
Trade volume reached around 575 million shares worth 4.3 trillion won compared to 615.1 million shares worth 5.1 trillion won on Thursday. Decline's edged out gainers by 412 to 340 with 65 titles ending flat.
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