Seoul shares end flat on investor caution

(ATTN: ADDS bond yields in penultimate para) SEOUL, June 3 (Yonhap) -- South Korean stocks finished nearly unchanged Friday as caution prevailed ahead of a U.S. labor data release, analysts said. The local currency climbed against the U.S. dollar. After volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI) shed 0.03 percent, or 0.73 point, to 2,113.47. Trading volume was thin at 257 million shares worth 6.73 trillion won (US$6.23 billion) with gainers outpacing losers 441 to 368. "Investors took a breather ahead of the U.S. employment report to be released later at night," said Cho Byung-hyun, an analyst at Tongyang Securities Inc. "Investors will try to find a direction after seeing the U.S. market reactions to the upcoming data." The KOSPI rose as much as 0.84 percent in early morning trade, boosted by large-cap gains, but the benchmark index bobbed in and out of negative territory in afternoon trading amid subdued volume. Institutional investors led the fall, reducing a net 163.6 billion won from the Seoul bourse. Dominant fixed-line service provider KT added 1.62 percent to 37,550 won after its subsidiary KT Skylife skyrocketed to the daily limit of 14.86 percent on its first day of public trading. Satellite broadcaster KT Skylife ended at 20,100 won. Other telecom carriers also gained ground after the sector leader, SK Telecom, announced mobile rate cuts in the previous day. SK Telecom inched up 0.31 percent to 159,500 won, and LG Uplus rose 0.53 percent to 5,700 won. Oil refiners and chemicals makers, however, drifted lower. S-Oil sank 5.19 percent to 146,000 won, and LG Chem dipped 3.66 percent to 500,000 won. Korea Zinc, the world's second-largest zinc smelter, slumped 6.31 percent to 364,000 won as lower gold and silver prices were feared to dent its profit. The local currency closed at 1,080 won to the greenback, up 0.7 won from Thursday's close, as Europe's move to bail out Greece pushed the U.S. dollar lower, dealers said. Bond prices, which move inversely to yields, closed flat. The yield on three-year Treasuries stayed unmoved at 3.57 percent and the return on the benchmark five-year government bonds also ended unchanged at 3.84 percent. South Korean financial markets will be closed on Monday for Memorial Day.