Seoul shares forecast to face technical rebound next week

SEOUL, Jan. 30 (Yonhap) -- South Korean stocks are predicted to undergo a
technical rebound next week as last week's losses were a short term trend,
analysts said Saturday.

They, however, cautioned that the market may be affected by volatility in the
global market sparked by worries over U.S. bank regulations and China's fiscal
tightening in the coming week.
The benchmark Korea Composite Stock Price Index (KOSPI) finished at 1,602.43 on
Friday, down 81.92 points, or 4.86 percent from a week earlier.
The local market got off to a weak start due to the announcement of U.S. bank
regulations in early last week, while North Korea's firing shells into the Yellow
Sea and China's additional fiscal measures extended its losses late in the week.
In addition to bad news from China and the U.S., jitters over the worsening
fiscal deficit in European countries including Greece may have a impact on the
local market, analysts said.
However, the improved economic indicators of the U.S will maintain momentum on
the local market, they said. The U.S. economy expanded 5.7 percent in the fourth
quarter from a three months earlier.
"Investors need to brace for a possible fall in the local market. If the market
gains ground, investors may as well sell their shares," said Lee Seung-woo, an
analyst at Daewoo Securities Co.
ksnam@yna.co.kr
(END)

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