South Korean shares ended bullish for two straight sessions on Wednesday as foreigners bought more shares than they sold, but the gain was limited due to concerns over slowing export growth, analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) edged up 3.45 points, or 0.18 percent, to close at 1,959.24. Trading volume stood at 494.66 million shares worth 7.04 trillion won (6. 25 billion U.S. dollars).

Fluctuating between positive and negative terrain, the KOSPI managed to end higher as foreign investors kept their buying streak for the second consecutive session.

The gain, however, was limited as concerns emerged that South Korea, heavily dependent on exports, may face a weak export growth going forward amid lingering economic uncertainties such as Europe' s debt crisis and the global economic slowdown.

"The local stock market stayed in a narrow box range with no clear direction. Overseas investors shored up stocks, but there was no momentum to drive up the KOSPI above the psychologically important 1,960-point level," Jeong Seung-jae, an analyst at Mirae Asset Securities in Seoul, told Xinhua.

Jeong noted that new export orders in China showed weak performance last month, saying that China's slowing export growth would have a negative impact on the South Korean economy, which heavily depends on the world's No.2 economy for its exports.

China's purchasing managers index (PMI), gauging manufacturing activities, climbed to 50.5 in January, the highest since October, but the sub-index for new export orders fell to 46.9 last month from 48.6 the previous month, indicating that China's foreign trade remained sluggish.

Adding to concerns, South Korea's exports decreased for the first time in more than 2 years, turning the nation's trade balance into the red for the first time in 24 months. Trade deficit reached 1.96 billion dollars in January, while exports reduced 6.6 percent on-year to 41.54 billion dollars last month.

The U.S. economic indicators weakened market sentiment. Consumer confidence in the U.S. fell to 61.1 in January after recording two straight months of gains, while the S&P/Case-Shiller home price index fell for the third consecutive month.

Institutional and retail investors were net sellers worth 276.5 billion won and 199.4 billion won respectively, but foreign investors shored up the market by purchasing a net 416.2 billion won worth of local shares. Foreigners maintained their buying streak for two straight sessions, sending the total stock purchases for this year to more than 6 trillion won.

Builders and machinery firms gained ground. Top builder Hyundai Engineering & Construction jumped 4.75 percent to 75,000 own, and its smaller rival GS Engineering & Construction climbed 3.81 percent to 103,500 won. Leading construction equipment manufacturer Doosan Infracore surged 6.84 percent to 20,300 won.

Tech shares ended mixed. The country's leading consumer electronics maker LG Electronics rose 1.93 percent to 84,300 won, keeping its winning streak for 8 straight sessions, after news that its operating profit turned into the black in the fourth quarter, but market bellwether Samsung Electronics dropped 2.53 percent to 1,079,000 won.

Transportation shares ended bullish on hopes for positive earnings. The country's No.1 air carrier Korean Air soared 6.29 percent to 54,100 won, and its smaller rival Asiana Airlines jumped 4.74 percent to 7,730 won. The South Korean shipping firm Hanjin Shipping skyrocketed 9.26 percent to 14,750 won on expectations for a rise in freight rates.

The local currency closed at 1,126.3 won against the greenback, down 3.0 won from Tuesday's close.

Bond prices ended higher. The yield on the liquid three-year treasury notes fell 0.01 percentage point to 3.37 percent, and the return on the benchmark five-year government bonds lost 0.01 percentage point to 3.48 percent.