Seoul shares likely to take pause next week
Korean stocks are expected to level off next week on rally fatigue from the latest sessions, moving in a stable terrain, as there are no apparent drivers to spur the market, analyst said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) finished at 1,946.40 this week, up 0.14 points from a week earlier, as a large inflow led by foreign and program buying pushed up the key index to near the 1,950 mark on Tuesday.
Offshore investors snapped up a combined net 1.36 trillion won (US$1.19 billion), while institutional and retail investors sold off a net 370 billion and a net 936 billion won, respectively.
The main bourse got off to a weak start earlier in the week, dented by downbeat economic data in China and Japan, before rebounding in later sessions on the back of positive numbers in some U.S. indexes. It lost ground on Friday, however, as top-cap Samsung Electronics Co. tumbled more than 3 percent.
The KOSPI was closed on Wednesday for the country's Liberation Day.
Market watchers said the Seoul bourse will likely be influenced by what the U.S. Federal Reserve's minutes on its monetary policy meeting say about the global economy. Lingering hopes for a third round of a quantitative easing by the Fed have remained as a potential boost factor for upward momentum, they said.
"Investors are most likely to take a pause, capping the KOSPI in a technical correction," said Lee Seung-woo, an analyst at KDB Daewoo Securities Co.
A number of economic data releases in global markets are slated for next week, with housing-related data and durable goods orders in the U.S. and China's purchasing managers index. (Yonhap)