Korean stocks finished almost unchanged on Tuesday, as a Greek rescue deal helped erase earlier losses, but profit-taking by institutional investors weighed down the bourse, analysts said. The local currency rose against the U.S. greenback.

After a volatile trading, the benchmark KOSPI shed 0.03 percent, or 0.66 points, to 2,024.24.

Trading volume was heavy at 699 million shares worth 5.56 trillion won ($4.95 billion) with losers leading gainers 441 to 377.

“The KOSPI posted a seven straight weekly gain without any correction and it needs a new momentum to see a further rise,” said Kim Hyoung-ryoul, an analyst at Kyobo Securities Co.

“With such momentum absent and anticipations for the Greek deal already reflected, institutional investors locked in profit.”

The KOSPI fell as much as 0.86 percent at one point, but the index wiped out the loss on reports that an agreement was reached between European finance ministers and private lenders to avoid a default in Greece.

Airline companies led the decline on speculations that the Greek deal will raise demand for oil and consequently hike up prices.

Market leader Korean Air Lines tumbled 6.36 percent to 53,000 won and its smaller rival Asiana Airlines slumped 4.39 percent to 7,410 won.

Stocks of shipbuilders went south with Samsung Heavy Industries down 2.79 percent to 36,550 won and Hyundai Heavy Industries dipping 0.62 percent to 323,000 won.

But market heavyweight Samsung Electronics rose 0.43 percent to 1,180,000 won after its announcement to spin off its loss-making display panel division into a separate company.

The local currency closed at 1,122.6 won to the greenback, up 0.9 won from Monday’s close, as the agreement to save Greece from going into default stoked risk appetite, dealers said. 

(Yonhap News)