SEOUL: South Korean stocks closed marginally lower Friday, as investors took a cautious approach ahead of Greece’s crucial referendum on a bailout plan on Sunday, analysts said. The local currency rose slightly against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 2.92 points, or 0.14 percent to close at 2,104.41. Trading volume was moderate at 412.6 million shares worth 5.87 trillion won ($5.23 billion) with decliners outpacing gainers 418 to 389.
“While investors are less sensitive about the Greek debt than before, they are holding off making bets to see how the vote will turn out,” said Kim Sung-hwan, an analyst at Bookook Securities Co.
Greece is scheduled to vote on an austerity measure offered by its international creditors, which requires the debt-mired nation to make stricter reforms in return for aid to revive its economy.
Either way, the result of the referendum won’t have a direct impact on the local market, offset by other domestic factors such as the central bank’s latest rate cut and an extra budget put forward by the government, Kim added. Foreigners bought a net 282 billion won, with individuals also snapping up a net 101.6 billion won. Institutions, however, sold off a net 93.8 billion won.
Airlines and steelmakers lost ground. Top player Korean Air Lines slumped 3.26 percent to 41,500 won and its rival, Asiana Airlines, was down 2.03 percent to 6,270 won.
Samsung Electronics, the biggest firm by market cap, dipped 2.39 percent to 1,268,000 won on concerns over its second-quarter earnings. It is due to release the earnings preview Tuesday.
In contrast, pharmaceutical stocks finished bullish amid a continuing national effort to curb the spread of the Middle East Respiratory Syndrome. LG Life Sciences, a producer of biotech medicines, spiked 12 percent and industry leader Yuhan Corp. gained 0.34 percent to 297,500 won.
