(Updates to afternoon)
By Jungyoun Park
SEOUL, March 12 (Reuters) - Seoul shares traded relatively
stable on Thursday after the South Korean central bank's decision
to keep the base rate unchanged, with losses by LG Display
(034220.KS) after a stake sale by Philips Electronics weighing on
the index.
The Korea Composite Stock Price Index was down 0.46
percent at 1,122.32 points at 0250 GMT.
"Yes, the rate was unchanged this time, but it followed a set
of big cuts in recent months. Also the broader downward trend for
rates is not changed, which is why shares didn't react much to
the news," said Kwak Joong-bo, a market analyst at Hana Daetoo
Securities.
The central bank kept rates unchanged at a record low of 2.00
percent on Thursday, pausing an unprecedented spree of six
straight cuts. [ID:nSEO72109]
LG Display sank 5.05 percent to 26,300 won after Philips
Electronics said it had sold its entire 13 percent stake in the
firm for 630 million euros ($803.6 million). [ID:nLB482485]
Sources close to the sale said the price was 25,500 to 26,000
won per share, a discount to the 27,700 won closing price on
Wednesday. [ID:nLB482485]
The sale at discounted price prompted some investors to lock
in immediate profits, analysts said.
Banks retreated across the board after their latest gains and
as the won currency KRW= turned slightly weaker. KB Financial
Group (105560.KS) went down 3.11 percent and Hana Financial Group
(086790.KS) slid 2.99 percent.
Meanwhile news that China's exports tumbled in February
weighed on issues that are sensitive to Chinese economic trends.
[ID:nPEK1013]
Hyundai Heavy Industries (009540.KS), the world's No.1
shipbuilder, lost 1.84 percent and Samsung Heavy (010140.KS)
declined 1.6 percent.
(Editing by Jonathan Hopfner)
