SEOUL, Feb 23 (Reuters) - Seoul shares retreated slightly on Tuesday as investors remained wary before congressional testimony by U.S. Fed Chairman Ben Bernanke, while LG Display retreated amid second quarter slowdown concerns.
The Korea Composite Stock Price Index (KOSPI) was down 0.16 percent at 1,624.51 points as of 0120 GMT.
'The market has turned more cautious before Bernanke's scheduled testimony...investors probably want to hear that the U.S. discount rate hike was not intended as tightening, and that the Fed plans to maintain its current monetary policy stance for some time,' said Kim Se-jung, a market analyst at Shinyoung Securities.
'Stocks are also taking a bit of breather after yesterday's firm gains, but are definitely stabilising after recent volatility,' Kim added.
Institutions were buyers of a net 18 billion won ($15.67 million) worth of stocks, while foreign investors were sellers of a net 10 billion won.
Shares in LG Display, the world's No.2 flat panel maker, retreated 3.93 percent amid concerns second quarter demand could slow after robust growth in the first quarter.
'The first quarter will be strong thanks to strong demand from China ahead of its Lunar New Year Holiday, and the Winter Olympic and World Cup effects. But investors are getting concerned about the second quarter...there are worries a supply glut may take place,' said Lim Seung-hum, an analyst at Hanwha Securities.
Shares in LG Electronics, LG Display's largest stakeholder, also shed 1.71 percent.
Defensive issues in the telecommunications and food sectors outperformed as investors sought safer bets.
Shares in SK Telecom, South Korea's top mobile phone operator, rose 1.41 percent and Lotte Confectionary , a major snack maker, traded flat.
But shipbuilders turned lower after rallies in the previous session.
STX Offshore & Shipbuilding was down 1.66 percent and Daewoo Shipbuilding lost 0.49 percent.
Rises in the Baltic Dry Index, which tracks the cost of shipping key commodities, boosted shippers.
Hyundai Merchant & Marine gained 0.87 percent and Hanjin Shipping advanced 2.23 percent.
($1=1149.0 Won)
(Reporting by Jungyoun Park; Editing by Jonathan Hopfner) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) Keywords: MARKETS KOREA STOCKS/ (jungyoun.park@thomsonreuters.com; +82 2 3704 5643; Reuters Messaging: jungyoun.park.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2010 AFX News
