SEOUL, April 6 (Reuters) - Seoul shares traded flat on Tuesday, while shares in Samsung Electronics rose to a new historical high after it said it was on track for a record quarterly profit.
Analysts, however, voiced caution on the second half outlook of the world's No.1 memory chip maker, citing relative weakness of its handset unit and intensifying competition in the television business.
'Samsung Electronics' earnings guidance came out strong, but largely in line with expectations, not exactly a surprise. Question now is whether Samsung can keep up the momentum after the second quarter,' said Y.S. Rhoo, a market analyst at Hyundai Securities.
Samsung, which overtook Hewlett-Packard last year as the world's largest electronics firm by revenue, estimated its January-March consolidated operating profit at a record 4.3 trillion won, higher than a consensus forecast for 4.1 trillion won polled by Thomson Reuters I/B/E/S.
'Samsung Electronics' second half earnings is seen relying much on the memory chip sector, and eyes will be on how the sector fares. A stronger won is also a factor to be watched as the won nears 1,100 won per dollar,' Rhoo added.
The Korea Composite Stock Price Index (KOSPI) was up 0.01 percent at 1,725.16 points as of 0230 GMT.
Analysts said broader profit-locking activities were taking place, while massive equity fund redemptions prompted institutions to sell its stock holdings.
Foreign investors were buyers of a net 45.9 billion won ($40.9 million) worth of stocks, poised to pick up stocks for an 18th session, the longest buying streak since August, 2009.
Institutions were sellers of a net 21.8 billion won.
Shares in Samsung Electronics were up 0.11 percent at 871,000 won, after hitting a fresh historical high of 875,000 won.
Meanwhile, other blue chip technology and auto shares, which had led the market's latest rallies, retreated.
Shares in Hynix Semiconductor, the world's No. 2 memory chip maker, declined 1.55 percent and Hyundai Motor , South Korea's top automaker, lost 0.38 percent after hitting a record high on Monday.
Airline issues rose led by Asiana Airlines, which jumped 11.4 percent, following a positive brokerage note.
'The number of international flight passengers leaving from Incheon International Airport rose 22.2 percent in March from a year ago....while demand for long-distance flights is increasing steadily, demand for short-distance, leisure-oriented flights, is recovering rapidly,' said Park Eun-kyung, an analyst at Samsung Securities, in a note.
Brokerage issues also outperformed.
Shares in Woori Investment & Securities advanced 3.63 percent and Daewoo Securities gained 2.31 percent.
((Editing by Jacqueline Wong))
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