Shares expected to gain further ground this week

Korean stocks are expected to continue their upward trend this week on a series of events that may keep market sentiments afloat, analysts said.

The benchmark Korea Composite Stock Price Index closed this week at 2,113.47, up 0.63 percent from a week earlier.

The KOSPI lost ground at the beginning of last week, dipping to 2,093.79 on program and foreign sell-offs. The index rebounded to the 2,100 level Tuesday as foreign investors returned to the Seoul market.

Foreigners purchased a net 400 billion won ($370.5 million) worth of local stocks this week, ending their month-long selling spree.

Analysts said the KOSPI will rise at a slower pace next week as a series of events could unsettle market sentiment.

Stock options and futures will expire on the last trading day of this week, known as a double witching day, which often sets off heavy trading.

“The market faces a double witching day this week, but movements in the market will not be too severe,” said Shim Jae-yeop, an analyst from Shinhan Investment Corp. “But a move to maintain the 2,100 level will become stronger.”

“The KOSPI will show rather limited rebounds and slow growths than a strong and rapid rise,” Lee Seung-woo, an analyst at Daewoo Securities Co. Ltd., said. 

(Yonhap News)