Seoul shares ended slightly lower after volatile trade on Friday, with technology issues including LG Elec and Hynix Semiconductor rallying, but losses by banks and crude refiners weighing on the index. The Korea Composite Stock Price Index finished down 0.21 percent at 1,126.03 points, snapping four consecutive gaining sessions.
"Shares are taking a breather after their uninterrupted gains this week, which were helped by the won currencys latest strength," said Bae Sung-young, a market analyst at Hyundai Securities. "Now that shares are trading near their 120-day average of around 1,150 points, investors are taking a more cautious stance, trying check macroeconomic and financial sector indicators before making more bets," Bae added.
Hanwha Corp, a core unit of Hanwha Group, jumped 8.06 percent after media reports quoted the groups chairman as saying it would take legal action to recover the initial deposit of roughly 300 billion won ($201.9 million) it put down in an unsuccessful bid for Daewoo Shipbuilding.
"Chairm Kim Seung-youns comments literally confirmed the groups intention to file the suit, which may help it claim the enormous deposit it paid," said Lee Jeong-hun, an analyst at Hana Daetoo Securities. LG Electronics also rose 4.88 percent on Friday on a brokerage upgrade and positive comments from the companys CEO.
Citigroup in a report raised its target price on LG Elec to 110,000 won from the previous 100,000 won, and also upped its earnings estimates for the firm in fiscal 2009 and 2010. Shares were also helped by comments from CEO Nam Yong during the firms annual shareholder meeting that it would boost investment in solar cell batteries and light emitting diodes (LED), analysts said.
Meanwhile memory chip makers advanced on market talk that the Taiwanese governments earlier bid to help rescue its struggling DRAM makers was facing difficulties, according to analysts. Taiwans Powerchip said it was not expecting significant government help for local DRAM firms, as it pursues talks with Japans Elpida on a possible merger.
"There are talk that one or more of them could go bankrupt within the first half of this year," Lee said, adding that the troubles may help South Korean memory chip makers boost their market share.
Hynix Semiconductor ended up 5.01 percent. But SK Energy, the countrys top crude refiner, ended 1.23 percent lower after Standard & Poors on Thursday revised to negative from stable its outlook on the firms long-term corporate credit rating.
Losses by financials also weighed, with Shinhan Financial Group falling 2.61 percent. Local institutions sold a net 5.3 billion won worth of shares on the main board, and retail investors bought a net 95.6 billion won worth. Foreign investors sold a net 140.4 billion won. Advancers led decliners by 503 to 301, with 85 titles ending unchanged.
A total of 495 million shares worth 5.15 trillion won changed hands, compared with 484 million shares worth 5.9 trillion won traded on Thursday. The KOSPI 200 June futures index rose 2.20 points to 147.90 points and the KOSPI 200 spot index fell 0.73 points to 147.29. The junior Kosdaq market gained 0.69 percent to end at 389.27 points.