S. Korean stocks to face correction next week

SEOUL, Sept. 26 (Yonhap) -- South Korean stocks are headed for a downward
correction next week due to a lack of buying interest, analysts said Saturday.

Foreign investors snapped their buying spree towards the end of this week,
dragging the market lower. An absence of influential factors means the market
will likely continue along that path, the analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 0.48 percent or 8.23
points from the previous week to close at 1,691.48 on Friday due to foreign and
institutional sell-offs.
In middle of the week, the key index breached the 1,700-mark for the first time
in 15 months, helped by the Asian Development Bank's upgrade of its outlook of
the South Korean economy for 2009.
The ADB predicted Tuesday the Korean economy will shrink 2 percent this year,
revising upward its earlier growth projection of negative 3 percent.
The direction of the market this week will depend largely on offshore investors,
analysts said.
"Profit-taking by foreign investors may be realized sometime next week, but it
will be limited," said Kim Joong-hyun, an analyst at Goodmorning Shinhan
Securities Co.
Lee Joo-ho, an analyst at Woori Investment Securities Co., expected the market to
fall further next week as bearish U.S. markets could spook overseas investors
Last week, foreign investors bought a net 3.69 trillion won (US$3.1 billion)
worth of shares listed on the Seoul bourse, while foreign net purchases of local
shares fell to 600 billion won this week.
ksnam@yna.co.kr
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