S. Korean stocks likely to add gains next week on foreign buying

SEOUL, Sept. 19 (Yonhap) -- South Korean stocks will likely extend gains next
week as global economic recovery hopes and investors' risk appetite continue to
prompt foreign buying, analysts said Saturday.
The country's benchmark Korea Composite Stock Price Index (KOSPI) ended the week
at 1,699.71, up 48.01 points or 2.91 percent from a week earlier.
Powerful foreign purchases led market rallies last week, boosted by improving
economic data in the U.S. and the promotion of local shares to developed market
status by the global index compiler FTSE Group. The U.S. dollar's global downturn
also lifted overseas buyers' appetites for non-dollar assets.
Foreign investors scooped up 3.69 trillion won (US$3.1 billion) worth of local
shares last week, the largest weekly purchase on record.
Continued strong foreign buying is forecast to add gains to the KOSPI in the
coming week, analysts projected, though they noted a scheduled rate-setting
meeting by the U.S. Fed and the upcoming G20 summit could affect foreign fund
inflows.
They said overseas investors' increased focus on large-cap shares may lead the
next week's advance with institutional buyers also following suit.
"Institutional investors will probably follow foreigners' bluechip-centered
buying patterns next week," said Lee Seung-woo, an analyst at Daewoo Securities,
"as increasing demand for fund redemptions among retail investors curtails their
purchasing power."
pbr@yna.co.kr
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