South Korean stocks closed marginally lower Friday as foreigners shunned risky assets on growing geographical tension in the Middle East feared to stir problems with the crude oil supply, analysts said. The local currency rose against the U.S. dollar.

The Korea Composite Stock Price Index lost 2.76 points, or 0.14 percent, to close at 2,019.80. Trading volume was moderate at 442.6 million shares worth 5.04 trillion won ($4.56 billion) with decliners outstripping gainers 445 to 368.

Analysts said such jitters in the Persian Gulf, following strikes by Saudi Arabia and its allies against Shiite rebels in Yemen on Thursday, will have limited impact on the local market, given that the regional tension will likely soon be quelled by the Saudi alliance.

"A surge in the crude value won't be enough to jolt the market since its price level had already stayed too low. Rather, the surge gives a boost to energy stocks," said Lee Sang-jae, an analyst at Eugene Investment & Securities Co.

Oil refiners gathered ground on the main bourse. SK Innovation advanced 0.85 percent to 94,700 won, with smaller rival S-Oil gaining 0.79 percent to 63,800 won.

Builders and utilities finished bearish, offsetting gains in retailers and foodmakers. GS Engineering & Construction tumbled 5.51 percent to 29,150 won, and state-run power supplier Korea Electric Power Corp. fell 1.96 percent to 45,000 won.

In contrast, Hotel Shilla, the hotel chain arm of Samsung, rose 1.55 percent to 98,000 won, with confectionery maker Orion climbing 1.43 percent to 1,133,000 won.

Hyundai Hysco, a steel sheet and pipe producer, spiked 6.6 percent to 64,600 won after local media reported Thursday its affiliate Hyundai Steel is mulling a merger with the company.

Foreigners sold off more shares than they bought at 93.5 billion won, for the second consecutive session of net selling after snapping a nine-day buying streak. Institutions also dumped a net 19.7 billion won, while individuals scooped up a net 153.3 billion won.

The local currency ended at 1,103.30 won against the greenback, up 4.7 won from Thursday's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys shed 0.9 basis point to 1.770 percent and the return on the benchmark five-year government bonds fell 2.1 basis points to 1.850 percent. (Yonhap)