Shares down on U.S. fiscal cliff woes

South Korean stocks closed 0.39 percent lower on Friday as investor sentiment was dented by the stalled U.S. fiscal cliff talks, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index dropped 7.73 points to 1,995.04. Trading volume was light at 345.1 million shares worth 4.24 trillion won ($3.95 billion), with decliners outnumbering gainers 407 to 380.

“Local shares edged down as investors were still concerned about the U.S. fiscal cliff issue,” said Kwak Byung-ryeol, an analyst from Eugene Investment & Securities Co.

“However, the downward trend was limited as the Democrats and Republicans are expected to reach a partial agreement on the issue by next week,” Kwak added. “Foreign investors also continued to scoop up local shares.”

Foreigners purchased a net 79.1 billion won worth of local shares, extending their buying streak to 12 straight sessions. (Yonhap News)