Seoul shares likely to remain weak next week

SEOUL, Oct. 18 (Yonhap) -- South Korean stocks are expected to remain unstable next week on declining investor sentiment from persistent jitters in the financial sector, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 4.89 percent this
week to end at 1,180.67 on Friday, dropping to its lowest level since October
2005, due to amplified investors' panic over faltering market conditions.
Over the past three days, the index has lost around 14 percent on massive foreign
sell-offs following sharp surges on Monday and Tuesday.
The government's announcement on Sunday on measures aimed at stabilizing the
financial sector may soothe investor sentiment, but third-quarter earnings
announcements by major blue chips next week may sway market movements.
"Measures to be announced on Sunday could prevent further steep losses, but
depressed and limited movements will likely continue next week," Lee Seung-woo,
an analyst at Daewoo Securities, said.
The finance ministry is seeking to inject over US$30 billion into banks,
exporters and the currency swap market in a bid to restore confidence and
stabilization to the financial sector, according to officials. A final decision,
along with other measures, will be announced on Sunday.
odissy@yna.co.kr
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