Seoul shares likely to see correction

South Korea's stock market is expected to undergo a correction in the coming week as cautious investors watch the direction of US and other major overseas markets, dealers said on Friday. "After this week's gains, the market is expected to face a correction," said Dongbu Securities analyst Lim Dong-Min.
"Investors will remain cautious because of the US FOMC (Federal Open Market Committee) meeting and the release of inflation data in major markets abroad next week," he said. "On the domestic front, there will be pressure from triple witching," he said, referring when options and futures contracts and their underlying stocks simultaneously expire.
Lim predicted the benchmark KOSPI index could fall below 1,900 points. For the week to December 7, the index gained 28.32 points or 1.48 percent to 1,934.32. Sentiment was lifted this week by growing hopes the US would be able to stem the subprime crisis through another cut in interest rates and a rescue plan for homeowners.