South Korean shares are expected to come under selling pressure next week as investors attempt to cash in recent gains to take a breather, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,164.58 points on Friday, the highest in almost two years, aided by a continued rise in Samsung Electronics and eased uncertainties over the Fed's rate hike and political chaos in South Korea.
This week, the local stock market started a tad higher as the country's Constitutional Court delivered a verdict to oust President Park Guen-hye on March 10, capping months-long political uncertainties in Asia's fourth-largest economy.
Also, along with a continued foreign investor buying binge, and top market cap Samsung Electronics continued to build up gains, closing at a historic high.
Foreign investors, in particular, bought local stocks for 10 consecutive days.
"Investors may try to lock in gains seen in the past few sessions, although things are going on a positive note," said Jo Yon-ju, an analyst at NH Investment & Securities.
The analysts said a set of major events have passed, which means that the market will take a breather next week. "Investors will increasingly pay attention to the first-quarter corporate earnings, which could serve as a catalyst for an additional rise," the analyst said.
Analysts said sound economic data and increased risky appetites may put a floor under the market, and investors are advised to snatch up economic cycle-sensitive and market heavyweights. (Yonhap)
Kim Jung-mi firstname.lastname@example.org
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