Seoul stocks to face correction next week

SEOUL, April 18 (Yonhap) -- South Korean shares are likely to face a correction
next week as investors are tempted to lock in gains ahead of earnings seasons,
analysts said Saturday.
The country's key KOSPI stock index finished at 1,329.00 on Friday, down 7.04
points, or 0.53 percent, from last week's close.
"The market seems to be heading for a correction stage," said Kim Choong-hyun, an
analyst at Goodmorning Shinhan Securities. "The key index may fall to as low as
the 1,200-point level."
Since early March, the country's stock market has soared around 30 percent,
boosted by hopes that the economy is nearing its bottom and that first-quarter
corporate earnings will not be as bleak as expected.
"Technically, the market will be placed under selling pressure," said Lee
Seung-woo, an analyst at Daewoo Securities. "Investors will also have to digest
first-quarter corporate earnings as well."
Key economic data such as first-quarter gross domestic product will also set the
overall tone for the market next week, according to analysts.
Meanwhile, U.S. stocks rose on Friday. Helped by a reassuring report on consumer
sentiment and stabilization in quarterly results for General Electric and
Citigroup, the Dow Jones industrial average rose 5.90 points, or 0.07 percent, to
8,131.33.
The Dow has gained 22.7 percent over the past six weeks, its biggest six-week
gain since July 1938.
sam@yna.co.kr
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