Foreign investor selling leads Seoul shares down after 3-day rise

* KOSPI falls 0.78 pct
* Foreign selling deepens loss
* Samsung Elec, automakers lag

SEOUL, Oct 19 (Reuters) - South Korean shares slipped on
Friday after weaker results from Google Inc and
Microsoft Corp prompted a sell-off by foreign
investors.
The Korea Composite Stock Price Index (KOSPI)
dropped 0.78 percent to 1,943.84 points, snapping a three-day
rally and underperforming an index of Asian shares
, which was down 0.4 percent.
"Investors have little expectations for Q3 earnings. Some
are now focusing on Q4 results, with the belief that the worst
is truly over for China," said Won Sang-pil, an analyst at
Tongyang Securities.
The local earnings season will kick off later today with
petrochemicals maker LG Chemicals releasing its
quarterly results.
Foreigners sold a net 223 billion won ($201.93 million)
worth of KOSPI shares on Friday, according to Korea Exchange
data, dragging the index further down from its opening loss.
"Although we are waiting for confirmation from the Financial
Supervisory Service, it appears as though U.S. funds are
steadily pulling out of the market ahead of the fiscal cliff,"
said Park Hae-sung at LIG Investment & Securities, referring to
the automatic U.S. spending cuts that may occur.
Market heavyweight Samsung Electronics
underperformed, closing 2.6 percent lower and easing off after a
week of gains.
Automakers also lagged, with shares in Hyundai Motors
and affiliate Kia Motors down 0.9
percent and 2.8 percent, respectively.
However, state-owned Korea Gas Corp (KOGAS)
jumped 5.4 percent after Mirae Asset, a local securities firm
recommended buying its shares, citing shale gas opportunities.
Decliners outnumbered winners 466 to 333.
The KOSPI 200 benchmark of core stocks closed down
1 percent, while the junior KOSDAQ edged 0.9 percent
higher.

Move on day -0.78 percent
12-month high 2,057.28 14 March 2012
12-month low 1,750.60 19 Dec 2011
Change on yr +6.47 percent
All-time high 2,231.47 27 April 2011
All-time low 93.10 6 January 1981
($1 = 1104.3500 Korean won)

(Reporting By Somang Yang and Seongwon Chang; Editing by
Muralikumar Anantharaman)