S. Korean stocks to remain vulnerable next week

SEOUL, Oct. 25 (Yonhap) -- South Korea's stocks are expected to experience
another bear market next week amid persistent concerns about financial sector
fallout affecting the overall economy, analysts said Saturday.
The predictions come in the wake of the benchmark Korea Composite Stock Price
Index (KOSPI) plummeting 20.49 percent, or 241.92 points, to close at 938.7 on
Friday's trading.
This is the first time since June 29, 2005 that stocks have fallen under the
1,000 mark.
Experts said that while there was little good news on the domestic front, the
record breaking drop is mainly due to panicky investors fearful about worsening
market conditions. They added financial and real estate market stabilization
measures released by the government had only a limited effect since such measures
take time to "sink in" and help investors regain confidence.
Analysts said the KOSPI's performance during the upcoming week will be influenced
by the U.S. GDP report card for the third quarter, to be released next week, and
other monthly and quarterly economic and business indicators.
Many, however, are forecasting that the market may be nearing its lowest point
and that selling would be unwise at the present juncture.
"There is growing belief that the market may be bottoming out after falling below
the 1,000 mark, so selling shares could be less advantageous," said Lee
Seung-woo, an analyst at Daewoo Securities.
yonngong@yna.co.kr
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