Seoul shares steady

Seoul shares ended on an even keel Monday as hope for signs of economic recovery ahead of a set of key US data releases to start the new year were tempered by persistent eurozone worries and sluggish domestic manufacturing activity.
"In the short run, better-than-expected US data may spark a relief rally, but the wider focus in January will be clearly on developments in the eurozone countries, and the levels of success in rolling over their maturing debt," said Lee Jin-woo, a senior market analyst at Mirae Asset Securities.
The Korea Composite Stock Price Index (KOSPI) wrapped up the first trading day of 2012 0.03 percent higher at 1,826.37 points. Data released early on Monday showed South Korea's manufacturing activity for December dipped to a fresh three-year low, underscoring concerns about slowing global demand in the face of an unresolved debt crisis in Europe.
Policymakers in Europe marked the 10th anniversary on Sunday of the euro's introduction and urged governments in the currency bloc to exercise fiscal discipline in the face of their debt crisis. A broad rally in large-cap technology issues spearheaded gains, with Samsung Electronics Co closing up 2.08 percent and LG Electronics rising 2.28 percent.
Shares in Hynix Semiconductor Inc soared 6.83 percent on hopes that a strong recovery in DRAM prices would improve its fortunes in 2012. "Spot DRAM prices have been steadily rebounding in the last week after touching what many analysts saw as the bottom line, and Hynix's relative strength in mobile memory is providing a lot of cushioning given the booming handset industry," said Nam Tae-hyun, an industry analyst at IBK Securities.
Construction shares chipped in with modest gains. Hyundai Engineering & Construction Co Ltd, South Korea's largest builder, advanced 2.13 percent while Samsung Engineering Co Ltd rose 3.23 percent.
Insurers were the worst performing shares on the day, with Dongbu Insurance Co, South Korea's second largest insurer by market value, tumbling 4.49 percent while Hyundai Marine & Fire Insurance Co Ltd fell 3.91 percent. Institutional investors gobbled up a net 231.7 billion won ($201.1 million) worth of shares, their largest single-day net purchase in more than three weeks, while foreign investors sold 100.5 billion won worth. The KOSPI 200 index closed 0.26 percent higher while the junior KOSDAQ index rose 1.32 percent.