South Korea's stock market is likely to continue undergoing corrections in the coming week due to concerns over weak corporate earnings and the ongoing global economic slump, an analyst said Friday. Over the week to December 26, the KOSPI fell 63.11 points or 5.3 percent to close at 1,117.86.
"Technical corrections are expected to continue into the early days of next year," Choi Sung-Rak of SK Securities told AFP. Market sentiment has weakened amid concerns over corporate restructuring, weak corporate earnings and gloomy economic fundamentals, he said. "Many investors are likely to remain on the sidelines in the week ahead," he said.
Seo Jeong-Kwang at LIG Investment and Securities told Dow Jones Newswires that investors seemed to have refrained from stock buying amid deepening concerns about local corporate earnings and weak finances. Seo added that last-minute window dressing was still possible during the last two sessions of this year.