Seoul shares flat

Seoul shares ended flat on Wednesday, as investors switched out of exporters and into stocks less affected by a strong won, as well as shipbuilders such as Hyundai Heavy seen to have good earnings potential.
Financial services provider Shinhan Financial Group closed 0.2 percent higher at 48,950 won ahead of its quarterly earnings that showed net profit rose 23 percent, topping analysts' forecasts.
Chip maker Hynix Semiconductor Inc fell 2.6 percent to 32,000 won on share overhang worries as creditor banks plan to sell up to a 14 percent stake worth up to $2.2 billion. The benchmark Korea Composite Stock Price Index (KOSPI) closed up 0.04 percent at 1,451.09, not far from Tuesday's record intra-day high of 1,461.20.
"Stocks related to domestic demand or other smaller caps are gaining at the expense of exporters since they have better earnings prospects right now," said Kim Seong-ki, chief investment officer at SH Asset Management.
"The won will continue to be a negative factor for now." Trading has been light this week, with investors focused on the Federal Reserve's policy meeting later on Wednesday. Hyundai Heavy Industries Co, the world's biggest shipbuilder, rose 3.96 percent to 105,000 won.
Investors also chose domestically-geared stocks, with retailer Lotte Shopping Co gaining 2.02 percent to 379,500 won. SK Telecom Co rose 1.1 percent to 230,500 won. Steel maker POSCO Co Ltd rose 2.9 percent to 283,500 won as investors viewed a stronger won as cutting the cost of imported raw materials, and with the stock also lifted by a share buyback programme.
Samsung Electronics Co Ltd, the world's biggest maker of memory chips, fell 0.61 percent to 657,000 won, while Hyundai Motor Co, the country's biggest auto maker, fell 0.59 percent to 84,200 won.
Trade volume reached 265.2 million shares worth 3.5 trillion won, data at 0635 GMT showed, compared to 275.9 million shares worth 4 trillion won on Tuesday. Decliners outnumbered gainers by 422 to 325 with 76 stocks ending flat.
Foreign investors sold a net 43.2 billion won in shares on the main bourse, while retail investors sold a net 26.4 billion won. Institutional investors sold a net 1.3 billion won.
The June KOSPI 200 futures index lost 0.20 point to 188.70, but the underlying KOSPI 200 spot index added 0.11 point to 188.62. South Korea's junior and tech heavy Kosdaq market fell 0.40 percent to finish at 683.37.