Korean stocks dropped 1.11 percent Friday on renewed eurozone concerns that shrugged off optimism about economic recovery, analysts said. The local currency declined sharply against the U.S. currency.

The benchmark KOSPI fell 20.6 points to 1,843.14. Trading volume was heavy at 466.6 million shares worth 4.36 trillion won ($3.75 billion) with losers outnumbering gainers 551 to 264.

“Europe issues weighed heavily on the market, dragging down the key index,” said analyst Lee Seung-woo from Daewoo Securities Co.

“Financial situations in Hungary and Greece are worsening, and a credit downgrade of France is imminent.”

However, investors expect that a summit meeting between France and Germany slated for early next week will not produce any substantive measures to avoid default of the ailing countries, said Lee.

Positive U.S. job data raised hopes the country’s beleaguered labor market is improving, but the eurozone woes dampened investor sentiment, he added.

Foreign investors and institutions went on a selling spree, offloading a net 46.5 billion won and 72.8 billion won worth of shares, respectively.

The loss was broad-based, led by techs, steelmakers and carmakers.

World’s largest memory chipmaker Samsung Electronics slipped 1.42 percent to 1,040,000 won despite a record operating profit estimate for the fourth quarter of last year. Another local tech giant LG Electronics sank 2.03 percent to close at 72,400 won.

Top steelmaker POSCO slid 1.66 percent to 385,500 won and Hyundai Steel fell 2.23 percent to 96,600 won.

Automakers were also bearish, with market leader Hyundai Motor losing 1.79 percent to 219,500 won and its smaller affiliate Kia Motors dropping 2.19 percent to finish at 66,900 won.

The local currency closed at 1,162.9 won to the greenback, down 10.2 won from Thursday’s close, as investors dumped riskier assets, dealers said.

(Yonhap News)