South Korean stocks closed a little higher Friday but stayed mostly in negative territory throughout the session as uncertainties over debt-mired Greece weighed on investors, analysts said. The local currency rose slightly to the U.S. dollar.
The benchmark Korea Composite Stock Price Index rose 2.68 points, or 0.14 percent, to finish at 1,955.52. Trading volume was light at 301.3 million shares worth 5.5 trillion won ($5.04 billion) with gainers outpacing decliners 427 to 364.
Analysts said the instability in the eurozone handling Greek debts is adding jitters to the stock market, as local shares are more prone to outside risks.
"Stocks will more likely be coupled with changes at the macro level for some time since the Greece risk has overtaken uncertainties stemming from sluggish corporate earnings," said Kim Sung-hwan, an analyst at Bookook Securities Co.
Worries about a default in Greece grew stronger Wednesday after the European Central Bank said it won't accept its debts as collateral for funding. But such fear waned as the ECB on Thursday decided to provide emergency liquidity aid to the debt-ridden country.
Foreigners offloaded more shares than they bought in Seoul, worth a net 152.9 billion won, extending their selling binge to a second day. Institutions also dumped a net 104 billion won.
But the KOSPI eked out gains toward the closing bell as large-cap shares reverted to positive terrain, and a program buying also propped up the main index.
Samsung Electronics gained 1.03 percent to 1,372,000 won, with KB Financial rising 3.16 percent to 37,500 won.
Hyundai Glovis, the logistic arm of Hyundai Motor, surged 5.91 percent to 251,000 won after the Chung family who controls Hyundai Group succeeded in selling their 13.4 percent stake in the company through a block deal, a move to comply with stiffer regulations regarding conglomerates.
The secondary KOSDAQ closed up 0.55 percent to settle at 604.13, continuing its rally for a fourth straight session after it breached the significant 600 mark Thursday for the first time in more than six years.
The local currency ended at 1,089.70 won against the greenback, up 0.8 won from Thursday's close.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys slipped 1.3 basis points to 1.962 percent and the return on the benchmark five-year government bonds fell 0.7 basis points to 2.050 percent. (Yonhap)
