* Hyundai, Kia fall 2 pct on stronger won
* SK Hynix and LG Display up more than 3 pct
* Telecoms outperform on defensive plays
By Somang Yang
SEOUL, Feb 6 Seoul shares dipped to a two-month
low on Wednesday in the lightest trading volume so far this year
as automakers remained under pressure from the strength of the
won, overshadowing gains in technology stocks.
The Korea Composite Stock Price Index (KOSPI) closed
down 0.1 percent at 1,936.19 points, falling for a fifth
straight session. Some 345 million shares changed hands on the
main board, the lowest since Dec. 28.
"Seoul shares oscillated in a narrow range today as there
was little momentum either way," said Park Seok-hyun, an analyst
at KTB Securities. "This will continue until the won-yen
exchange rate stabilises."
The won rose 22.8 percent against the yen last year and is
up another 5.6 percent so far in 2013, helping the
price competitiveness of Japanese exporters.
The yen is expected to weaken further following news that
the governor of Japan's central bank will step down earlier than
anticipated, paving the way for a successor who will
aggressively ease monetary policy.
Hyundai Motor fell 2 percent and Kia Motors
lost 2.1 percent.
But SK Hynix and LG Display, which
supply components used in smartphones, rebounded on bargain
hunting after recent falls. SK Hynix gained 3.4 percent on
Wednesday and LG Display added 3.3 percent.
Telecommunications companies also benefited as investors
sought safe bets. The communications subindex, which
includes South Korea's three telecom service providers - SK
Telecom, LG Uplus and KT -
rose 2.8 percent.
Advancing shares outnumbered decliners 464 to 339.
Foreign investors sold a net 89 billion Korean ($81.9
million) worth of KOSPI shares, weighing on the main board.
The KOSPI 200 benchmark of core stocks closed down
0.2 percent, while the junior KOSDAQ edged 0.9 percent
Move on day -0.1 percent
12-month high 2,057.28 14 March 2012
12-month low 1,769.31 25 July 2012
Change on yr -3.05 percent
All-time high 2,231.47 27 April 2011
All-time low 93.10 6 January 1981
($1 = 1087.0500 Korean won)
(Editing by Chris Gallagher)