Seoul stocks take a breather, techs gain

(Updates to mid-morning)

SEOUL, March 26 (Reuters) - Seoul shares traded flat on
Wednesday, pausing after a series of gains which have swept the
main index up some 6 percent in the past six sessions, as
investors took stock of underlying credit market concerns.

Technology shares such as Samsung Electronics (005930.KS: Quote, Profile, Research, Stock Buzz)
rose on expectations that earnings at the world's top memory chip
maker will surpass earlier market consensus when it reports first
quarter results in mid-April.

But financials came under fresh pressure as falling U.S.
housing values brought lingering concerns about the global credit
market back to the forefront.

The Korea Composite Stock Price Index was up 0.3 percent at
1,680.38 points as of 0200 GMT. The index has risen from 1,574.44
since March 17, boosted by easing credit concerns after U.S.
interest rate cuts and better than expected U.S. bank earnings.

"(Renewed) concerns about the subprime mortgage market in the
United States and the recent gains in the past week or so have
encouraged investors to take profits," said Chi Ki-ho, an analyst
at Dongbu Securities.

Banking shares such as Kookmin Bank (060000.KS: Quote, Profile, Research, Stock Buzz) and Shinhan
Financial Group (055550.KS: Quote, Profile, Research, Stock Buzz) declined, with Kookmin down 1.93
percent to 56,000 won and Shinhan down 1.72 percent to 51,300
won.

Samsung Electronics rose 1.31 percent to 618,000 won and
Samsung SDI (006400.KS: Quote, Profile, Research, Stock Buzz) gained 3.31 percent to 74,900 won.

"We are long on tech companies as earnings are set to
improve," said Kang Hyun-chul, an analyst at Woori Investment &
Securities. "But financials are expected to post mediocre
results," he added.

Manufacturers such as Hyundai Motor (005380.KS: Quote, Profile, Research, Stock Buzz) and Kia
Motors 00270.KS declined, as worries about the U.S. economy
resurfaced after data showing U.S. consumer confidence fell to a
five-year low.

Hyundai lost 0.26 percent to 75,800 won and Kia fell 2.24
percent to 10,900 won.

Shares that are sensitive to energy prices such as Korean Air
Line (003490.KS: Quote, Profile, Research, Stock Buzz) fell after oil rebounded on continued weakness
in the U.S. dollar. U.S. crude CLc1 rose 36 cents to $101.22 a
barrel, the first gain in four trading days. [ID:NSYD67521]

Korean Air Line lost 4.96 percent to 53,700 won and Asiana
Air 020560.KQ fell 0.3 percent to 6,590 won.

(Reporting by Park Jung-youn; Editing by Marie-France Han and
Keiron Henderson)