South Korean shares could fall further in the coming week as oil price rises continue and foreign investors show no signs of returning to the local bourse, analysts said on Friday. The benchmark KOSPI index is likely to test this year's low of 1,574.44 points registered on March 17 given the weak sentiment, they said.
For the week to July 4, the index slumped 6.4 percent or 106.51 points to close at 1,577.94 points Friday, as foreign investors unloaded stocks for the 20th consecutive trading day. "No significant catalyst is likely to emerge in the coming week as oil hikes continue, depressing sentiment," said Choi Sung-Rak of SK Securities.
"The market is likely to remain weak in the week ahead in the absence of any new momentum," he said. Cho Jae-Hoon of Daewoo Securities said foreign investors continued leaving the local market because of global weakness in stock markets and surging energy costs. "The KOSPI may fall below the year's low early in the coming week," he said.
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