Korean stocks slipped 0.78 percent Monday, as foreign investors opted to offload local shares on concerns that Greece still has a long way before coming to a resolution credible enough to stabilize the country’s debt turmoil, analysts said. The local currency lost ground against the U.S. dollar.

Moving in a tight range, the benchmark Korea Composite Stock Price Index retreated 15.80 points to finish at 2,002.50.

Trading volume was moderate at 362.5 million shares worth 4.54 trillion won ($ 4.05 billion) with decliners outstripping gainers 530 to 294.

“Greece has just agreed to what it’s going to do with the debts, which means they haven’t actually started doing it.

Investors now have to keep an eye on how its plans will unfold,” said Han Beom-ho, an analyst at Shinhan Investment Corp.

The International Swaps and Derivatives Association referred the south European nation’s debt write-down plan as a “credit event,” predicting massive insurance payments for bondholders against the default.

More vigorous economic data and credit easing measures should come along in order to lend support to investor sentiment, since it is unlikely to hope for any extra liquidity boost from the European central banks, added Han.

Offshore investors unloaded a net 153.6 billion won, extending their selling streak for five straight sessions except for a thin net purchase on Friday.

Steelmakers and machineries drove the index down, with Hyundai Steel falling 3.77 percent to 102,000 won and zinc smelter Korea Zinc losing 2.93 percent to 414,000 won.

Doosan Engine, the world’s second-largest ship engine maker, dived 8.83 percent to 12,900 won after it temporarily closed down one of its factories on decreased orders amid slowing global demand.

In contrast, SK Networks, the trading arm of South Korea family-controlled conglomerate SK Group, finished bullish to climb

5.31 percent to end at 10,900 won, following media reports that the firm is seeking to buy Australian coal miner Cockatoo Coal.

Blue-chips closed mixed, with market behemoth Samsung Electronics shedding 1.63 percent to 1,210,000 won and top automaker Hyundai Motor advancing 1.41 percent to 215,500 won.

The local currency ended at 1,124.00 won against the greenback, down 6.2 won from Friday’s close, as foreigners fled for safe-haven assets, dealers said. 

(Yonhap News)