Seoul shares sink 0.51 pct on Greece debt woes

South Korean stocks closed 0.51 percent lower Thursday, as renewed concerns over Greek debts sapped investor appetite, analysts said. The local currency lost ground against the U.S. dollar.
  

The benchmark Korea Composite Stock Price Index slid 9.95 points to finish at 1,952.84. Trading volume was moderate at 387.5 million shares worth 4.24 trillion won ($3.89 billion) with decliners outnumbering gainers 419 to 374.
  

Analysts said the abrupt decision by the European Central Bank not to accept Greek government debts in return for funding weighed on the stock market, along with weaker-than-expected U.S. payroll data released on Wednesday.
  

"The eurozone problem stands in the way of spurring a strong foreign inflow, and we're not seeing a trough for the oil price," said Im Sang-kook, an analyst at Hyundai Securities Co.
  

Worries about a default in Greece re-emerged following the ECB decision, as lenders in the debt-mired country face pressure to seek funding from its own central bank.
  

An estimated 213,000 workers were added to U.S. payrolls in January, below the market consensus of 223,000.
  

U.S. crude oil prices dove nearly 9 percent to $48.50 per barrel overnight Wednesday, snapping a four-day rally, as related data showed the crude stockpiles rose to the highest level in more than three decades.
  

Foreigners dumped more shares than they bought on the Seoul bourse, worth a net 108.6 billion won. Institutions also unloaded a net 104.6 billion won, while retail investors scooped up a net 210.5 billion won.
  

Shares were bearish across the board, led by chemical and financial issues. LG Chem dived 5.39 percent to 202,000 won, with Shinhan Financial slumping 5.36 percent to 43,250 won.
  

The tech-laden secondary KOSDAQ closed up 0.43 percent to 600.81, breaching the 600 mark for the first time in more than six years.
  

Analysts projected the index could move up further down the road, citing a change in the fundamentals of KOSDAQ-listed firms, many of which are engaged in next-generation businesses like mobile or health care that hold high prospects.
 

The local currency ended at 1,090.50 won against the greenback, down 6.4 won from Wednesday's close, after China cut its reserve-ratio as part of a monetary easing measure aimed at increasing liquidity, dealers said.
  

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 1.4 basis points to 1.975 percent and the return on the benchmark five-year government bonds gained 1.7 basis points to 2.057 percent. (Yonhap)