South Korean stocks retreated 0.95 percent on Friday, led by institutional selling in tech issues amid the stalled U.S. fiscal budget negotiations, analysts said. The local currency edged up against the U.S. dollar.

The benchmark Korea Composite Stock Price Index slipped 19.08 points to finish at 1,980.42. Trading volume was moderate at 545.5 million shares worth 5.27 trillion won ($4.90 billion) with losers outstripping gainers 445 to 359.

“Institutions unloaded quite a bit of their holdings in tech firms. But it’s not a negative sign since they’re readjusting their portfolios to other sectors as well in a broader sense that other industries have upward potentials,” said Park Sung-hoon, an analyst at Woori Investment & Securities Co.

Park cited continuing inflows of foreign money as a sign Friday’s fall is no more than a one-off factor.

“The only uncertainties weighing down the market would be the U.S. fiscal cliff concerns. But it’s an ongoing process which investors, though wary, are still counting on,” added Park.

Institutions sold off a net 121.0 billion won, while foreigners snapped up a net 410.2 billion won.

Major tech blue-chips headed south, with flat panel giant LG Display slumping 3.51 percent to 30,250 won and SK hynix dropping 3.42 percent to 25,400 won.

Market behemoth Samsung Electronics tumbled 4.06 percent to 1,442,000 won, after the European Union commissioner said on Thursday it’s preparing an antitrust complaint against the company over its patents.

Steelmakers and builders also closed bearish. No. 1 steelmaker POSCO fell 1.27 percent to 351,000 won and Hyundai Engineering & Construction slid 3.03 percent to 70,400 won. (Yonhap News)