Seoul shares to continue upward moves next week

SEOUL, Sept. 13 (Yonhap) -- South Korea's stock market is expected to remain bullish next week as investors, relieved from financial crisis woes, are likely to snap up undervalued shares, analysts said Saturday.

The key Korea Composite Stock Price Index (KOSPI) gained 5.23 percent last week
to end at 1,477.92 on Friday, buoyed by optimism that the market has bottomed
out, with concerns over a potential financial crisis easing.

The local bourse seems to be recovering from concerns over the so-called
September crisis, analysts said.

South Korea had been gripped for months by fears that its economy might face a
crisis similar to the one it suffered a decade ago if foreign investors withdrew
their money in droves from the local bond markets.

A possible capital exodus earlier this week, when massive amounts of bonds were
scheduled to mature, drove concerns. No such capital flight took place, according
to market watchers.

"Market sentiment has improved, and investors will scoop up undervalued
shares such as financials and construction," said Lee Seung-woo, an analyst
at Daewoo Securities.

Analysts said investors' interests will be focused on an economic slowdown and
financial woes in the United States.

In particular, U.S. firms such as Morgan Stanley and Goldman Sachs are to report
their second-quarter earnings next week, which may once again prod investors to
pay attention to the subprime mortgage crisis-battered financial sector, analysts
said.