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Korea's ends slightly lower, Kosdaq cools

SEOUL: South Korean stocks ended flat on Friday as investors picked over blue chips but focused mainly on small and medium-sized companies, analysts said.

The Korea Composite Stock Price Index (KOSPIclosed down 2.61 points or 0.30 percent or 864.76.

"Some big titles on the main exchange perked up. But it wasn't strong enough to offset the selling pressure by individual investors," said Kim Chang-hee, a market strategist at Seoul Securities.Telecommunications stocks were mixed, with top mobile telephone service provider SK Telecom shooting up 111,000 won at 4.45 million on reports that its long awaited share split may happen soon. Dacom, fixed-line and Internet service provider, was down 16,000 won at 376,000 and state-run Korea Telecom was off 5,000 won at 109,000. Steel giant Pohang Iron and Steel Co (POSCO) was up 5,000 won at 117,000, buoyed after it said it plans to buy back five percent of its outstanding shares. Cheil Communications, a leading advertising company which also produces films, gained 13,500 won to 151,500 in line with an overnight rally in the Dow Jones industrial average, where the entertainment sub-index jumped 10.27 percent. On the week, the Kospi was off 1.64 percent.

The Kosdaq over-the-counter market retreated near the close after rising more than three percent by midday as rotational buying saw money move to large-cap stocks from medium-cap stocks.

The Kosdaq market inched down 0.91 point or 0.34 percent to 263.42.

On the week, it shed 0.4 percent, falling sharply on Wednesday after the Korea Stock Exchange announced plans designed to stop investors from fleeing the main board in favour of the market.

"Today's focus was on the large-caps that saw sharp drops on Wednesday. Investors sold medium-size cap stocks to buy large-caps," said Lee Young-mok, a Kosdaq analyst at Daewoo Securities. Internet-related shares were mixed in rotational buying by individual investors who account for more than 90 percent of the trade on the Kosdaq.

News-oriented Internet contents provider Digital Chosun was down 17,000 won at 262,000 while Internet website developer Indisystem rose to its upper limit, adding 33,500 won to finish at 313,500.

Kones, an Internet and computer training company, also went limit up, gaining 33,000 won at 308,500.On the main exchange, trade volume totalled 255.18 million shares, slightly up from on Thursday's 254.42 million.

Trade value of 2.92 trillion won was up from 2.89 trillion won on Thursday.

Individual investors sold a net 136.8 billion won worth of shares.

Institutional investors bought a net 68.0 billion won, though investment trust companies sold a net 18.9 billion won.

Foreign investors bought a net 61.7 billion won worth.

Advancing issues outpaced decliners 521 to 313 with 59 shares unchanged.

The March futures on the Kospi: closed up 0.05 points at 109.55, while the underlying spot index ended down 0.60 point at 108.43.

Analysts said they expect a technical rebound to spur limited gains on the main exchange early next week.

They said investors on the Kosdaq market are "digging deeper" and would buy a wider variety of stocks.-Reuters