Seoul shares edge down amid Greek debt woes

South Korean stocks closed a tad lower Thursday as investor sentiment was dented by the stalled talks on a Greek bailout, analysts said. The local currency lost ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index shed 0.47 points, or 0.02 percent to 2,085.06. Trading volume was moderate at 565.3 million shares worth 5.83 trillion won ($5.25 billion), with losers outpacing gainers 406 to 402.

The KOSPI had gained ground for the sixth consecutive trading session through Wednesday amid hopes that the Greece debt problem would be settled soon.

However, investor sentiment was chilled as the Greek bailout negotiations made little progress, which made a dent in the global stock markets overnight.

On Wednesday, the Dow Jones industrial average lost 0.98 percent and the tech-laden NASDAQ composite index also surrendered 0.73 percent.

"Large-cap shares took a hit from overnight Wall Street losses," said Bae Sung-young, an analyst at Hyundai Securities Co.

"The market failed to get a boost from a government plan to expand fiscal spending in order to bolster the economy."

Earlier in the day, the government said it is seeking to inject around 15 trillion won into the economy by drawing up an extra budget and utilizing various state-run funds.

Foreigners sold a net 9.16 billion won, and retail investors also offloaded more shares than they bought at 30.24 billion won and institutions scooped up a net 48.7 billion won.

Tech shares lost ground, with Samsung Electronics falling 2.53 percent to 1,269,000 won and SK hynix moving down 0.58 percent to 43,100 won. LG Display shed 1.77 percent to 25,000 won.

Carmakers also closed bearish, with No. 1 Hyundai Motor decreasing 0.75 percent to 132,000 won and its sister Kia Motors moving down 1.08 percent to 45,950 won. Auto parts maker Hyundai Mobis declined 0.95 percent to 208,000 won.

SK C&C added 3.16 percent to 277,500, won. The firm had lost ground in the previous session as the National Pension Service, the country's largest institutional investor, said it is against a proposed merger with SK Holdings. The institution is the No. 2 shareholder of SK Holdings.

Mobile carriers closed mixed, with KT rising 0.52 percent to 29,000 won while SK Telecom lost 1.17 percent to 254,500 won. LG Uplus added 2.27 percent to 9,910 won.

The local currency ended at 1,110.00 won against the greenback, down 1.60 won from the previous trading session.

Bond prices, which move inversely to yields, ended lower. The yield on three-year Treasurys added 0.8 basis point to 1.814 percent, and the return on the benchmark five-year government bonds moved up 2.0 basis points to 2.097 percent. (Yonhap)