Seoul shares ended flat on Thursday as scepticism prevailed that the European central Bank's offer of cheap loans may relieve the eurozone credit crunch but would not ensure a flow of liquidity into the troubled economies that need it most. "The market is taking a step back after a break-neck pace of recovery in such a short time, and profit-taking was seen following yesterday's steep rise," said KB Investment & Securities market analyst Kim Soo-young.
"The market witnessed some pretty violent movements this week, starting off with a steep tailspin followed by a sudden jump, and it's simply trying to stabilise and find its footing around the 1,800 level." The Korea Composite Stock Price Index finished down 0.05 percent at 1,847.49 points on Thursday. The KOSPI 200 index edged 0.05 percent lower while the junior KOSDAQ index crawled up 0.18 percent.
Banks drew on 490 billion euros in the inaugural European Central Bank tender of cut-price three-year loans and shattered expectations of softer demand, but uncertainty remained on how much of the credit would be re-invested in needy markets such as Spanish and Italian debt.
Italian Prime Minister Mario Monti faces a key confidence vote on Thursday ahead of a proposed 33 billion euro ($43 billion) austerity package aimed at restoring market confidence in the embattled nation. Technology issues were the biggest source of weakness on Thursday, with giants Samsung Electronics Co Ltd, the largest stock on the KOSPI by market value, slipping 0.47 percent and Hynix Semiconductor Inc off 0.94 percent amid a murky outlook on struggling DRAM prices. The technology sector was rocked as US software provider Oracle Corp missed its earnings target for the first time in ten years, sending its shares down 11 percent and weighing on peers on the NASDAQ Composite Index, which fell 0.99 percent.
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