South Korean shares are expected to rebound this week, ending a losing steak caused by record high oil prices and fears of a sharp US interest rate hike, dealers said. "The market is expected to see a technical rebound despite lingering concerns about high oil prices and the won's steady appreciation," LG Investment and Securities analyst Suh Jung-Kwan said.
The KOSPI will move between 950 points and 1,000 points, he said, adding trading would focus on shipbuilding, domestic and technology shares.
For the week to March 11 the composite index slumped 43.07 points, or 4.3 percent, to 979.72.
Average daily volume was 664 million shares worth 3.2 trillion won (3.18 billion dollars), compared to 591 million shares worth 3.7 trillion won the previous week.
"The local market took a breather, but it is positive in that it could be a pause for a greater leap," said Lee Yun-Hak, another analyst at LG Investment and Securities.
Share prices were flat on Friday amid consecutive selling by foreigners who fear an outflow from emerging markets if the US increases rates to tame inflation and the dollar appreciates.
Foreign investors have been net sellers for the last 12 trading days and not all brokerages believed a rebound was imminent.
"This correction will likely last for some time, maybe until the quarterly earnings season in mid-April," Bookook Securities analyst Kim Min-Sung said.
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