"Investors are rattled right now as the latest developments in Europe are far from reassuring." said Mirae Asset Securities market analyst Chung Seung-jae. Greek police clashed with anti-austerity protesters and Italy announced sweeping reforms in response to a European debt crisis that on Thursday pushed borrowing costs for France and Spain sharply higher. Foreign investors were sellers of a net 74 billion won ($65.5 million) worth of stocks, poised to sell for a second straight session, and institutions offloaded a net 68.2 billion won, set to sell for a fourth straight session. The Korea Composite Stock Price Index (KOSPI) was down 2.1 percent at 1,837.3 points as of 0203 GMT. "The market will probably move between 1,800 and 1,900 points for some time," Chung said. Crude oil refiners and shipyards lost ground as investors dumped stocks that are particularly sensitive to economic cycles. S-Oil Corp, the country's third-largest refiner, fell 4.2 percent. SK Innovation, the country's largest, shed 4.5 percent. Hyundai Heavy Industries Co Ltd fell 3.6 percent and STX Offshore & Shipbuilding Co Ltd lost 3 percent. Tong Yang Life Insurance Co Ltd rallied 5.9 percent after the company said its majority shareholder was mulling the sale of its stake in the firm, fuelling expectations of an acquisition deal. Seoul-based private equity fund Vogo Fund controls about 61 percent of the insurer, according to the company. Lotte Shopping Co Ltd dropped 3.7 percent to the lowest level in more than a year as sluggish department store sales fuelled concern about its profitability. Lotte Shopping earlier this week reported that third-quarter operating profit dropped 57 percent from a year earlier. "Investors are reacting sensitively to sluggish growth in sales and the lower profit reported by the company," said IBK Securities analyst Ahn Ji-young. This comes shortly after the Fair Trade Commission forced department stores to lower commission rates charged to retail vendors, fuelling concern about shrinking margins. Defensive stocks outperformed amid a growing preference for safer sectors. KT&G Corp, a tobacco and ginseng producer, rose 1.1 percent, and Hitejinro Co Ltd, a beer and spirits maker, advanced 0.9 percent.