Seoul stocks hit an all-time high on Thursday, boosted by surging steel and car makers amid hopes for better earnings, but a dip in flat panel makers on worries about profits in the sector sent the index lower at the close.
Index compiler FTSE's announcement late on Wednesday that it would not upgrade the country to developed market status had little impact on trading, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) closed down 0.10 percent at 1,169.59, but hit a record high of 1,178.61 in mid-session.
LG.Philips LCD Co Ltd, the world's No 2 flat panel maker, dropped 5.05 percent to 44,150 won, taking its losses over the past six sessions to 12.6 percent.
Shares in Samsung, the world's top flat screen maker and the biggest maker of memory chips, fell 0.98 percent to 607,000 won.
Among other tech decliners, Hynix Semiconductor Inc fell 1.03 percent to 24,100 won as some investors locked in gains from the stock's 7 percent surge on Wednesday.
POSCO rose 2.34 percent to 218,500 won as investors bet contract prices would begin to recover later this year. UBS upgraded its 2006 earnings-per-share estimates and target price for the world's fifth-biggest steel maker.
Trade volume reached around 487 million shares worth 4.3 trillion won compared to 532.4 million shares worth 4.2 trillion won on Wednesday. Decliners edged out gainers by 411 to 337 with 66 titles ending flat.
Foreign investors sold a net 48.1 billion won in shares on the main bourse, while retail investors bought a net 145.4 billion won. Institutional investors sold a net 91 billion won. The December KOSPI 200 futures index ended unchanged at 152.25, while the underlying KOSPI 200 spot index edged down 0.04 point to 151.99.
South Korea's junior and tech heavy Kosdaq market fell 0.60 percent to finish at 526.45.