S. Korean shares close almost unchanged

(ATTN: ADDS bond yields at bottom)
SEOUL, July 19 (Yonhap) -- South Korean stocks finished marginally lower Tuesday as blue-chip tech gains were offset by losses among oil refiners, analysts said. The local currency climbed against the U.S. dollar.
After bobbing in and out of positive territory, the benchmark Korea Composite Stock Price Index (KOSPI) shed 0.01 percent, or 0.27 points, to 2,130.21. Trading volume was moderate at 299 million shares worth 6.05 trillion won (US$5.7 billion) with gainers leading losers 462 to 345.
"Unlike falls in overseas markets, local stocks remained relatively unscathed from external uncertainties, including Europe's debt crisis," said Kwak Joong-bo, an analyst at Samsung Securities Co. "Although foreign investors were net sellers, the volume was small, and they haven't completely lost confidence in local companies."
The decline was led by large-cap shares, but small- and medium-cap companies gained ground and limited losses, he added.
Foreign investors remained net sellers for a sixth session, cutting a net 309.6 billion won worth of local shares.
Blue-chip tech companies bounced back from losses in the previous session after International Business Machines announced better-than-expected earnings for the second quarter on Monday and raised its full-year outlook.
Market bellwether Samsung Electronics gained 1.11 percent to 822,000 won, and LG Display, the world's second-largest maker of liquid crystal display (LCD) panels, jumped 3.37 percent to 29,150 won.
Oil refiners, however, lost significant ground after a government official said the government will probe about 500 gas stations about their oil prices.
"Although the probe is directed at gas stations, it signals that oil refiners will face significant government pressure to lower oil prices," said Hwang Gyu-won, an analyst at Woori Investment & Securities.
Top oil refiner SK Innovation slumped 5.71 percent to 206,500 won, and S-Oil sank 4.1 percent to 140,500 won.
Despite foreign sell-offs of local shares, the local currency finished at 1,059.7 won to the U.S. dollar, up 1.2 won from Monday's close, as robust earnings outlooks among local companies held up investor appetite for risks, dealers said.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasuries added 0.02 percentage point to 3.71 percent and the return on the benchmark five-year government bonds also rose 0.02 percentage point to 3.91 percent.
ylee@yna.co.kr