* KOSPI weaker in line with regional markets
* Samsung SDI declines after Tesla, Panasonic strengthen
* Struggling Hanjinkal drags down Korean Air
SEOUL, Oct 31 Seoul shares eased off a 27-month
closing high early on Thursday, as sentiment chilled after the
U.S. Federal Reserve's latest policy outlook and investors
awaited key surveys later this week.
The Korea Composite Stock Price Index (KOSPI)
slipped 0.6 percent to 2,046.63 points by 0205 GMT after hitting
2,059.58 in the previous session, a 27-month closing high.
"Extended liquidity raised questions about the condition of
the world's largest economy...investors are locking in gains
before a slew of data reinforces a slowdown in recovery," said
Hanyang Securities analyst Lim Dong-rak, referring to expected
soft U.S. data from the effects of a 16-day partial government
"Investors acknowledge more liquidity without firming
economic fundamentals will take the market no where."
The U.S. central bank kept its $85 billion-a-month stimulus
plan intact but did not sound quite as alarmed about the state
of the economy as some had anticipated, dragging down Wall
Street from its recent rally.
Investors are cautiously awaiting global indicators such as
U.S. and China manufacturing surveys for October, both due on
Friday. South Korea's October manufacturing sector survey
alongside preliminary export growth and trade balance data are
also due on the same day.
Foreign investors added pressure on the market by offloading
90.4 billion won ($85.26 million) of local shares in the
morning, enhancing chances their record net buying streak will
end at 44 sessions.
However, the flow of foreign capital has fluctuated, leaving
room for inflows by session end.
Shipbuilders Hyundai Heavy Industries Co Ltd and
Daewoo Shipbuilding & Marine Engineering Co Ltd fell
3.1 percent and 5.9 percent, respectively, with the sub-index
soaring 28.7 percent since July.
Samsung SDI Co Ltd fell 3.7 percent after
electric automaker Tesla Motors Inc said it would
sharply increase the number of lithium ion cells it receives
from Panasonic Corp, Samsung SDI's oversea competitor.
Korean Air Line Co Ltd plunged 9.1 percent after
deciding to provide a loan of 150 billion won for its struggling
affiliate Hanjinkal, raising risks over its
financial structure. Hanjinkal fell 7.9 percent.