South Korean stocks shed 0.32 percent Wednesday as eurozone leaders’ failure to sort out a Greece aid plan unnerved investor sentiment, analysts said. The local currency lost ground against the U.S. dollar.

After opening higher, the benchmark Korea Composite Stock Price Index retreated 6.14 points to close at 1,884.04, snapping a two-day rally. Trading volume was moderate at 371.6 million shares worth 3.90 trillion won ($3.59 billion), with losers outstripping gainers 545 to 271.

“Uncertainties arose after Europe failed to draw an agreement as to how to carry out the 15 billion euro ($19 billion) rescue package for Greece,” said Jeong Dong-hyu, an analyst at Eugene Investment & Securities Co.

Adding to concerns, U.S. Federal Reserve Chairman Ben Bernanke’s remarks on the fiscal spending cut dampened investor appetite, Jeong noted.

Bernanke said on Tuesday that failure to avoid the fiscal cliff would pose a “substantial threat” to the recovery. He chose not to elaborate on a widely expected further asset purchase by the Fed.

Institutional and retail investors reacted with a combined net selloff worth 159.0 billion won, while foreigners continued their buying spree for the second session with a net 133.2 billion won.

Most shares trended in negative terrain, led by losses in steelmakers and brokerages. No. 1 steelmaker POSCO slumped 2.69 percent to 308,000 won, with Woori Investment & Securities dipping 1.46 percent to 10,150 won.

In contrast, tech behemoth Samsung Electronics bucked up a 1.47 percent gain to 1,384,000 won. Retail issues also finished bullish, with Lotte Shopping rising 0.58 percent to 349,000 won and Shinsegae climbing 0.51 percent to 198,500 won.

The local currency ended at 1,083.20 won against the greenback, down 1.0 won from the previous session, on the KOSPI’s loss after appreciating to a yearly high the previous trading, dealers said. (Yonhap News)