Seoul shares expected to gain ground next week By Nam Kwang-sik

SEOUL, Sept. 20 (Yonhap) - South Korea's stock market is forecast to gain ground next week as global stock markets staged a rally on Friday, thanks to U.S. government rescue measures for banks and financial institutions, analysts said Saturday.

The key Korea Composite Stock Price Index (KOSPI) lost 1.5 percent last week to
end at 1,455.78 on Friday, due to U.S. financial turmoil stemming in part from
the bankruptcy filing of U.S. investment bank Lehman Brothers .
The local market stabilized somewhat on Friday, rising 4.55 percent after a Wall
Street rally prompted by hopes that U.S. authorities may propose new measures to
prevent a financial meltdown.
Global equity markets shot up on Friday on news that the Bush administration
began discussions with Congress to try and hammer out an extraordinary plan to
rescue the beleaguered banks and financial institutions.
The local market, helped by the U.S. government's moves, is likely to gain some
relief from the U.S. financial crisis next week, analysts said.
"The local market is expected to move in tandem with external economic factors
next week. The U.S. moves may have a positive impact on the local market," said
Kim Jung-hyun, an analyst at Goodmorning Shinhan Securities Co.
Lee Seung-woo, an analyst at Daewoo Securities Co., also predicted that the U.S.
moves may hearten investor sentiment.
"There may be relief for investors from woes over the U.S. financial crisis.
Thanks to improved investor sentiment, the local market may enter an upward
trend," Lee added.
Analysts warned, however, that investors should keep tabs on the lingering U.S.
financial turmoil.
ksnam@yna.co.kr