Seoul shares steady

Seoul shares ended steady on Monday as retailers and other stocks sensitive to domestic demand such as Kookmin gained on data showing a surge in retail sales, reinforcing confidence about robust economic growth at home.
But Samsung Electronics Co Ltd slid on worries about a US probe into potential price fixing in the sector, while firms dependent on China retreated after the country raised interest rates for a fifth time this year on Friday.
Trading was dominated by caution ahead of the Federal Reserve's policy meeting on Tuesday, which is widely expected to result in lower US interest rates, although there is uncertainty about the size of the move.
Only about 4.3 trillion won ($4.63 billion) worth of shares had traded in the main KOSPI, their lowest since May 4, according to data at 0618 GMT. "The question of what the Fed will decide at its Tuesday meeting is going to be the dominant theme today and tomorrow. We are likely to move in a boxed range," said Kim Jeong-hwan, a strategist at Woori Investment and Securities.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.1 percent to end at 1,871.68 points, managing a third consecutive day of gains. The Federal Reserve is widely tipped to lower US interest rates by either one-quarter or one-half percentage point from the current 5.25 percent, which, in South Korea, would help ease concerns about an economic slowdown in the country's second-biggest export market.
Retailers gained on data out on Monday showing annual growth in sales at the top three department stores hit a 14-month high in August. Hyundai Department Store Co rose 4.5 percent to 104,500 won. Lenders recovered from recent sharp losses, with Kookmin Bank up 1.4 percent at 73,500 won, recovering some of its 5.1 percent loss since September 3 as of last week. Citigroup analysts noted in a report recent worries about the asset quality in the banking sector - due to loan exposures to bankrupt firms in the construction sector - appeared overdone, and said it remained positive on the sector.
Samsung Electronics fell 2 percent to 545,000 won after Japan's Toshiba Corp and SanDisk Corp were among chip makers that said they had received subpoenas as part of a US Department of Justice probe into price-fixing in the US flash memory market.
Sectors that have benefited from China's booming economic growth fell after the country raised interest rates for a fifth time on Friday, quickening the pace of monetary tightening days after inflation had jumped to the highest level in nearly 11 years.
POSCO Co Ltd fell 0.2 percent to 611,000 won, retreating from a record on Friday. Separately, the world's fourth-biggest steel maker said it expected global steel markets would remain strong through next year backed by buoyant demand for shipbuilding and steady economic growth.
Hyundai Heavy Industries Co lost 1.2 percent to 375,500 won. Steel makers and shipbuilders are beneficiaries of the booming global trade from China's appetite for commodities.
Brokerages fell after a number of firms reported net profits in August dropped from July, amid a period of intense volatility in markets due to worries about global credit conditions.
Daewoo Securities Co dropped 2.1 percent to 26,150 won after the country's most valuable brokerage said on Friday net profit last month dropped 55.5 percent to 20.5 billion won from July, marking a 20.4 percent fall from a year earlier. Foreign investors sold a net 127.9 billion won ($137.8 million) in the main bourse, while institutional investors sold a net 28.6 net billion won. But retail investors bought a net 158.6 billion won.
Trade volume reached 312 million shares worth 4.3 trillion won compared to 373.1 million shares worth 5.5 trillion won on Friday. Decliners edged out gainers by 405 to 391 with 67 titles ending flat. The December KOSPI 200 futures index rose 0.3 point to 238.30, while the underlying KOSPI 200 spot index gained 0.2 point to 236.72. The junior and tech-heavy Kosdaq market rose 0.2 percent to finish at 784.75.