South Korean stocks closed lower on Friday as investors, concerned over rising geopolitical risks following the crash of a Malaysia Airlines jet over Ukraine, flocked to safer assets, analysts said. The Korean won also fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index fell 1.48 points, or 0.07 percent, to 2,019.42, retreating from the highest closing of the year in the previous session. The index fell to as low as 2,006.01 at one point but pared losses in late trading. Turnover was moderate at 273 million shares worth 3.23 trillion won ($3.14 billion), with losers outpacing gainers, 393 to 391.

A Malaysian airliner with 298 people on board crashed in war-torn east Ukraine. The U.S. claims it was shot down in a missile attack.

“The Ukraine issue has been priced in, and any impacts of the jetliner would be short-lived,” said Lim Noh-choong, an analyst at I’M Investment & Securities.

Market heavyweights closed mixed, while some defensive shares and shipbuilders rose.

Market leader Samsung Electronics rose 0.98 percent to close at 1,343,000 won.

Chipmaker SK hynix declined 1.36 percent to end at 50,800 won, and top steelmaker POSCO also dipped 2.11 percent to end at 301,500 won.

State-run Industrial Bank of Korea closed 3.66 percent down at 13,150 won, as the South Korean government seeks to offload part of its stock holdings in the policy lender.

Naver, South Korea’s leading search engine provider, gained 0.13 percent to end at 783,000 won on reports that its mobile messaging service affiliate, Line Corp., has filed for an initial public offering in the United States. Earlier this week, the company was also reported to have submitted its IPO application in Tokyo.

Kia Motors, the country’s No. 2 automaker, gained 0.54 percent to end at 56,000 won, while Hyundai Motor, the country’s top automaker, shed 0.64 percent to 232,500 won.

Shipbuilders finished in positive terrain. Industry leader Hyundai Heavy Industries remained unchanged at 166,000 won, and Samsung Heavy Industries surged 3.86 percent to end at 26,900 won.

The local currency closed at 1,029.50, down 0.4 won from the previous session on a reduced appetite for risky assets. (Yonhap)