South Korea's stock market is likely to undergo a correction after a record-breaking week since investors believe prices rose too high too quickly, analysts said Friday. The benchmark KOSPI index finished the week at a record close of 1,603.56, up 35.82 points or 2.3 percent over the previous Friday.
"We think the market is likely to undergo technical corrections in the coming week as investors increasingly feel burdened by the high prices," said Y.S. Rhoo of Hyundai Securities.
"US and Chinese and other overseas markets also need to take some rest," he said, noting that the recent rally was led by individuals rather than institutional and foreign investors. Daewoo Securities analyst Lee Kyung-Soo said sentiment was very strong.
But he also forecast some correction in the coming week, possibly down to 1,550 points, with investors awaiting a series of economic figures due in the US and China.
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