Seoul shares end flat;financials up, techs retreat

* KOSPI ends flat after volatile trade

* Financials outperform

* Techs decline after latest gains

(Updates to close)

By Jungyoun Park

SEOUL, July 9 (Reuters) - Seoul shares ended flat on Thursday
with a central bank decision to hold rates steady having a
limited impact on markets, but gains by financials including
Woori Finance Holdings (053000.KS) lent support to the index.

The Korea Composite Stock Price Index (KOSPI)
finished down 0.01 percent at 1,430.89 points.

"South Korean shares are outperforming regional peers on the
back of strong earnings momentum," said Chung Seung-jae, a market
analyst at Mirae Asset Securities.

"But shares have risen a lot from the year's low and I think
the main index has neared its near-term peak. The fact that
options expiry falls today also added to the market's
volatility," Chung added.

Reaction to the Bank of Korea's decision to keep the key
interest rate unchanged was muted as it was widely expected.

Gains were fueled by financials including banks and
brokerages.

"Banks are rising on talk that their second-quarter earnings
may come out better than the market's bleak expectations. The
latest rise in home-backed loans and the record-low interest rate
environment also help," said Y.S. Rhoo, a market analyst at
Hyundai Securities.

Rhoo said brokerages were benefiting from rising tradign
volumes and markets' solid recent performance.

KB Financial Group (105560.KS), the holding company for South
Korea's largest lender Kookmin Bank, gained 3.39 percent and
Woori Finance Holdings advanced 2.64 percent.

Samsung Securities (016360.KS) finished up 2.8 percent, and
Woori Investment & Securities (005940.KS) climbed 2.5 percent.

Transporters rose helped by falls in crude prices CLc1,
with Korean Air Line (003490.KS), South Korea's top air carrier,
up 0.84 percent and Asiana Airlines (020560.KS) gaining 0.67
percent.

Shares in KT Corp (030200.KS) ended up 1.76 percent helped by
a positive brokerage note.

Citigroup upgraded KT to "Buy" from "Hold" and raised its
target price by 9.5 percent to 46,000 won, citing cheap valuation
and a positive outlook.

"We are seeing increasing signs of KT seriously focusing
enhancing post KTF merger profitability...we see these efforts as
driving higher earnings and upward revision momentum over the
next few quarters," Citi said in its report dated July 8.

But technology issues, which had outperformed this month,
lagged as some investors moved to lock in profit, weighed down
further by falls in the U.S. semiconductor index .SOXX.

Samsung Electronics (005930.KS), the world's No.1 memory
chipmaker, ended down 0.76 percent, and Hynix Semiconductor
(000660.KS) lost 0.32 percent.