Seoul shares end flat as investors await action from Europe

* Record Spanish bond yields stoke fears for euro zone
* Stocks rangebound without clear progress in debt crisis

By Jung Yoon Lee
SEOUL, June 19 (Reuters) - Seoul shares finished flat on
Tuesday after trading in a narrow range as many investors took
to the sidelines, waiting for decisive steps by European leaders
to address the region's crippling debt crisis.
The Korea Composite Stock Price Index (KOSPI) closed
up 0.06 points at 1891.77.
"Trading volume was limited as investors appear to be
waiting for decisive action by European leaders as Spain's
fiscal health deteriorates," said KTB Securities analyst Park
Suk-hyun. "If such action materialises it could lead to a risk
asset rally, so investors are hesitant to sell. But strong
buying streaks are also unlikely before actual developments take
place."
Analysts noted that signs of concerted euro zone action
began surfacing on Monday, but added that markets were unlikely
to respond significantly unless new steps stemmed from a
pan-European agreement including Germany at this stage in the
2-1/2 year old debt crisis.
A draft communique from the Group of 20 summit in Mexico on
Monday included a pledge by Europe to consider steps toward a
"more integrated financial architecture" to stem the debt crisis
that threatens the survival of the euro.
Other Asian markets inched lower on Tuesday after yields on
Italian and Spanish bonds rose on Monday, with
Spain's 10-year yield climbing to a euro-era high
above the 7 percent mark that has already proved unsustainable
for Greece, Portugal and Ireland.
About 3.4 trillion won ($2.94 billion) worth of shares
exchanged hands on Tuesday, with decliners outnumbering winners
440 to 366.
Large-cap automakers outperformed, with Hyundai Motor Co
up 2 percent and affiliate Hyundai Mobis Co Ltd
adding 1.4 percent.
Energy and chemicals stocks lost ground. SK Innovation Co
Ltd slipped 1.7 percent and LG Chem Ltd
fell 1.5 percent.
LG Fashion fell 2.6 percent after multiple
analyst reports forecast a decline in second-quarter revenue
growth for the garment manufacturer.
"Revenue growth is expected to slow compared with the first
quarter due to the base effect of high revenue last year,
volatile weather conditions and lacklustre domestic spending,"
Yang Ji-hye, cosmetics and clothing sector analyst at E*Trade
Securities Korea, said in a note.
The KOSPI 200 index of core stocks fell 0.02
percent, while the junior, tech-heavy KOSDAQ edged 0.65
percent higher.

Move on day 0 percent
12-month high 2,192.83 8 July 2011
12-month low 1,644.11 26 Sept 2011

Change on yr +3.6 percent
All-time high 2,231.47 27 April 2011

All-time low 93.10 6 January 1981

($1 = 1157.0500 Korean won)

(Editing by Chris Lewis)