Seoul shares rise on techs, autos; banks retreat

* KOSPI reverses losses despite institutional, retail selling

* Financials lower amid higher Woori share volume

* Investors await tallies from U.S. Black Friday shopping (Updates to mid-morning)

By Jungyoun Park

SEOUL, Nov 26 (Reuters) - Seoul shares reversed early losses to rise modestly late on Thursday morning, on gains by key technology counters and carmakers, but economic outlook caution following weaker South Korean business sentiment data limited gains.

The Korea Composite Stock Price Index .KS11 (KOSPI) was up 0.39 percent at 1,618.16 points as of 0132 GMT.

"But gains are limited as there is a lack of compelling positive factors. It seems investors are awaiting tallies from U.S. holiday shopping from this weekends," said Kim Seung-han, a market analyst at HI Investment Securities.

"The market's near-term direction will probably be determined by how investors view U.S. shopping activity this holiday season," Kim added.

Sentiment was also dented by data on Thursday that showed South Korean manufacturers' assessment of the business outlook for December fell for a second straight month, adding to growing concern that economic recovery momentum may slow in coming months. [ID:nSEO266883]

Gains in the U.S. semiconductor index .SOXX boosted memory chip issues, sending Hynix Semiconductor (000660.KS) up 1.05 percent and Samsung Electronics (005930.KS) up 0.8 percent.

Hynix was further helped after major shareholders of the world's No.2 memory chip maker said late on Wednesday they would put a controlling stake up for sale in an auction next month, valued at close to $3 billion. [ID:nSEO357287]

But banking issues continued to trade lower. Shinhan Financial Group (055550.KS) retreated 1.22 percent and Woori Finance Holdings (053000.KS) shed 1.59 percent.

"Following a block deal of Woori shares, which was fairly large and came at quite attractive pricing, funds seemed to be grabbing them quite actively," said Joanne Lee, an analyst at Shinhan Investment Corporation. "Banking issues are under short-term pressure amid a higher volume of shares in the market, but share corrections have little to do with fundamentals."

Carmakers outperformed amid a continued bullish outlook on the sector for 2010.

Woori Investment & Securities said in a note distributed on Thursday that it expected the market shares of South Korean carmakers in the United States and China to grow steadily next year.

Hyundai Motor (005380.KS), South Korea's top carmaker, rose 1.5 percent, while Kia Motors (000270.KS) was up 0.85 percent. (Reporting by Jungyoun Park; Editing by Chris Lewis) ((jungyoun.park@thomsonreuters.com; +82 2 3704 5643; Reuters Messaging: jungyoun.park.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))