S. Korean stocks likely to undergo correction after 7th week of gains

SEOUL, Aug. 8 (Yonhap) -- South Korean stocks are likely to undergo corrections
next week, weighed down by profit-taking and hefty falls in Chinese stocks,
analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) finished the week at
1,570, up 18.71 points or 1.2 percent from the previous week. The KOSPI extended
its winning streak to the seventh week, fueled by improving economic conditions
and a string of solid corporate earnings.
Overseas investors spearheaded the upward momentum, with their net buying
continuing for the last 18 straight sessions.
The bullish trading, however, may come to an end next week as investors are
expected to pocket profits from the hefty gains, while falls in Chinese stocks
are also predicted to hurt investor sentiment here.
The Shanghai Composite Index, China's benchmark stock gauge, plunged 4.4 percent
last week, curbing two months of weekly gains on concerns the central bank may
reduce liquidity on the stock market.
"Amid further corrections predicted in Chinese stocks, local stocks seem unable
to lead a different path," said Lee Kyoung-min, an analyst at Woori Investment &
Securities. "Investors may have to embrace the expected correction as a chance
for bargain-hunting."
An expected decrease in foreign buying is also forecast to add downward pressure
here, with net purchasing volumes sharply cut lately, analysts said.
pbr@yna.co.kr
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