South Korean share prices are likely to see a slow week ahead as investors await quarterly earnings data from the United States for a fresh lead on the global economic and corporate outlook, dealers said Friday.
The options expiry on Thursday will add a technical note to trade, while the sharp gains seen over the past week will likely limit the room for a further advance.
The market rose 4.1 percent over the week to close at 821.26 points Friday on the back of solid gains in the US markets and expectations of economic recovery in the new year. Average trade volume of the week was 317 million shaers worth 1.8 trillion won (1.5 billion dollars), reflecting the quieter trade seen in a holiday-shortened week.
"The market may see a modest correction but it will largely depend on the movement in the US market," said Han Yo-Seop, an analyst with Daewoo Securities said.
"If the US market shows an upward trend in the next few weeks, the local market will attempt to rise above the current level," he said.
Korea Investment Securities analyst Shin Dong-Seong also said the market might be in for a correction next week ahead of Thursday's options expiry.
Oh Hyun-Seok, an analyst with Samsung Securities, said Friday's gains of some 10 points reflected the market's high expectations for economic recovery in the new year.
However, "there are few changes in the fundamentals and the market will move in step with the US," Oh said.
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