They said trade was generally cautious ahead of a long weekend for the three-day Chusok holiday through tomorrow and after Samsung Electronics' profit-warning and downbeat comment on the outlook for its LCD business.
The KOSPI index rose 4.54 points to 1,174.13, off a high of 1,176.06 and a low of 1,164.13. Volume was 376 million shares worth 3.4 trillion won (US$3.4 billion). Gains led falls 498 to 236, with 64 stocks unchanged.
Retail investors were net buyers of shares worth 112.2 billion won while foreign investors and institutions were net sellers of 105.9 billion won and 10.6 billion won, respectively.
Samsung Electronics itself continued to slide, falling more than two percent amid concerns over its profit warning and downbeat comment on the outlook of the Liquid Crystal Display business.
"It seems the warning by Samsung of a possible cut to LCD investment has provided a good excuse for profit taking after the stock rallied to the 610,000 won level," Daishin Securities analyst Na Min-Ho said.
He said broad sentiment still remains firm, as seen in the continued gains to record high levels.
Heavy losses by major IT stocks were offset by solid gains in POSCO, SK Telecom and Kookmin Bank, dealers said.
Samsung Electronics fell 14,000 won to 593,000 and Hynix shed 200 to 23,900.
Hong Kong down
Hong Kong share prices closed down 0.38 percent, led back below the key 15,000 points level by property stocks on worries over an expected US interest rate hike next week, dealers said.
They said investors also took profits ahead of the long weekend as the market will be closed tomorrow for a public holiday.
The Hang Seng index shed 57.82 points at 14,983.20, off a low of 14,965.98 and a high of 15,035.45. Turnover was HK$14.53 billion dollars (US$1.86 billion).
Eva Chu, research head at Kim Eng Securities, said property stocks came under selling pressure on worries over interest rates, with the US Fed expected to lift its key rate next week.
Interest rates in Hong Kong tend to follow those in the US due to the Hong Kong dollar's peg to the US dollar.
"Investors were cautious as it is expected that the US Fed will raise interest rates again by 25 basis points," added Howard Gorges, vice-chairman at South China Securities. He said the market "lacks momentum to move higher."
Chu said some investors also locked in profits in blue chips and H-shares ahead of the long weekend.
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