South Korean shares are expected to see a further correction as investors remain cautious, watching the direction of foreign markets, dealers said Friday.
"The market will likely go through further corrections next week, with the KOSPI's 20-day moving average level of 1,880 points at risk," Woori Investment Securities analyst Hwang Chang-Joong said. But the market may restore momentum unless there is a surprise outcome in the December 19 presidential election, he said.
For the week to December 14, the index lost 39.27 points or two percent to 1,895.05, the lowest level since November 29, when the index hit 1,877.56.
Asian markets were battered by deepening concerns about global credit markets following Moody's downgrade of US financial giant Citigroup. "The market is expected to remain weak in the coming week amid cautious trading due to lingering concerns" about global credit markets, Dongbu Securities analyst Lim Dong-Min. "If the global market stabilises, the domestic market will start rising. But the gains will be limited, with shares trading range-bound by the end of December," he said.