South Korean share prices are expected to undergo a correction in the coming week amid a widespread belief that the prices rose too much over too short a period, dealers said Friday.
For the week to April 20 the benchmark KOSPI gained 3.44 percent following volatile trade amid hopes for a continued global rally and concerns that China may take further measures to slow its runaway economy.
"Investors are concerned that the market may enter a correction as the recent rise was too steep and China may take further measures to cool its economy," said Lee Kyoung-Su of Daewoon Securities.
But such concerns eased considerably Friday as the local bourse rebounded 1.28 percent with investors taking their cue from sharp gains in other Asian markets after heavy selling the previous day. "We expect the index may move between 1,500 and 1,550 points in the coming week," he said.
Foreign investor interest in both the spot and futures markets improved overall supply and demand, the dealers said, with steel-makers, builders and shipbuilders among the most sought-after stocks.
"The local bourse apparently focuses more on corporate earnings," said Kang Moon-sung, an analyst at Korea Investment Securities, adding that China-related concerns had largely been factored in prices.
Comments
Comments are closed.