Seoul shares end at 3-week low

The index has renewed its 2010 high since last week but consistently failed to break above the key 1,800-point level,trading in a narrow 30-point range.

“There is general concern over the macroeconomy as the US Fed’s report to counter slow consumer spending indicates a pessimistic outlook on growth,” said Yang Chang-ho,an analyst at Hyundai Securities. “Technology shares also fell significantly on declining demand for computers and LEDs amid the threat of oversupply.”

Concern over global economic recovery mounted after the US Federal Reserve gave a pessimistic assessment of the economy and China reported a slowdown in factory output,adding to the picture of softening demand painted by a sharp drop in import growth.

China is South Korea’s biggest export market and buys about a quarter of the country’s overseas shipments.

Trade remained relatively thin as investors sought cues from the monetary authorities on the latest economic conditions. The Bank of Korea is due to decide short-term interest rates on Thursday.

Hynix,the world’s No.2 memory chip maker,dropped 6.2 per cent to a five-month low in heavy trade after Intel Corp and Advanced Micro Devices Inc sank on Tuesday,on concern over weaker-than-expected PC sales in the current quarter.

LG Display,which makes flat screens for notebooks and computers,tumbled 4.6 per cent and affiliate LG Electronics Inc declined 3.3 per cent.

Ssangyong Motor Co Ltd tumbled by the daily limit of 15 per cent on concern it may fail to find a buyer after Renault-Nissan pulled out of bidding for the country’s smallest automaker.

A South Korean court planned to pick preferred bidders for the company this week,a Ssangyong spokesman said.

Bigger rivals Hyundai Motor Co and Kia Motors Corp were the only major gainers among blue chip shares,partly helped by a rise in the yen to a near 15-month high against the US dollar,which will hit competitiveness of its Japanese rivals.

Hyundai rose 0.7 per cent and Kia added 0.3 per cent.

Doosan Heavy Industries & Construction Co Ltd fell 1 per cent after the company reported a 7 per cent drop in quarterly net profit.