South Korea's stock market is expected to face profit-taking next week as foreign and domestic investors remain cautious, analysts said on Friday. "The market is likely to come under pressure for profit-taking as foreigners are cautious after US consumption-related data came out weaker than expected," Won Jong-Hyuck of SK Securities told AFP.
"It will take a while before the KOSPI regains the previous high of 1,420 points," he said. The benchmark KOSPI closed Friday at 1,391.73, down 20.4 points or 1.4 percent from a week ago.
Analysts said the market is expected to be range-bound until investors have conviction about an economic recovery.
"Investors have shifted their focus to macro-economy from earnings, cautiously awaiting economic data that can justify the KOSPI's rapid rise," Seo Jeong-Kwang, a LIG Investment and Securities analyst, told Dow Jones Newswires. The market needs to take a breather before resuming its run, he said, adding the index would fluctuate between 1,370 and 1,420 points.