Korean stocks finished 1.03 percent lower Thursday, as foreign and institutional investors cut shares after recent surges, analysts said. The local currency fell against the U.S. dollar.

The benchmark KOSPI fell 20.85 points to 2,007.8. Trading volume was heavy at 678 million shares worth 6.28 trillion won with losers leading gainers 491 to 337.

“Sell-offs from foreign and institutional investors dragged down the index,” said Kwak Joong-bo, an analyst at Samsung Securities Co. “The KOSPI probably went through a temporary correction. It has never fallen more than 3 percent since mid-January.”

The KOSPI’s decline will likely be short-lived as global central banks are expected to implement additional monetary easing measures, prompting more capital inflows to the Seoul bourse, analysts said.

Foreign investors turned net sellers of Seoul shares for the first time in five sessions, leading to a net 36.3 billion won reduction of stocks. Institutional investors unloaded a net 219.5 billion won.

Large-cap tech exporters led the decline, after U.S. PC makers, including Dell and Hewlett-Packard, reported disappointing earnings and gave weaker-than-expected forecasts on the global PC market for the second quarter.

Market bellwether Samsung Electronics pulled back from its record-high price and tumbled 3.09 percent to 1,160,000 won. Its smaller rival LG Electronics slumped 4.43 percent to 84,100 won.

Airline companies lost ground amid nagging concerns about rising oil prices. Korean Air Lines drifted down 0.76 percent to 52,400 won while smaller rival Asiana Airlines fell 1.74 percent to 7,320 won.

Oil refiners took a breather from recent rallies. SK Innovation edged 0.26 percent down to 193,000 won and S-Oil closed flat at 136,500 won.

The local currency closed at 1,129 won to the greenback, down 3 won from Wednesday’s close, as overseas investors reduced Seoul shares and declining stock markets deterred investors from taking riskier bets, dealers said. (Yonhap News)