Seoul shares to trade lower amid bleak outlook: analysts

SEOUL, Jan. 3 (Yonhap) -- South Korean stocks are forecast to trade lower next
week amid falling exports and lack of signs pointing to an economic recovery,
analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,157.4 on
Friday, edging up 0.03 percent from the previous week, largely on hopes that
expected restructuring of the construction and shipbuilding sectors will increase
earnings down the road.
Most bank shares, however, lost ground following an unfavorable court ruling
against a lender's currency option contracts with small businesses. Shares of
other domestic-oriented sectors such as foodstuff and textile issues also fell.
The government said Friday that the economy posted its first trade deficit in
more than a decade in 2008 due to the worldwide economic slump and high oil
prices. Market watchers, given such sentiment, say stocks are expected to trade
weaker in the coming week.
"The holiday-buying sentiment will not likely continue into January, amid anxiety
over earnings reports," said Lee Seung-woo, an analyst at Daewoo Securities Co.,
adding that the market will be subject to sharp fluctuations in the latter half
of next week.
A string of statistics scheduled to be released next week, including employment
figures, is likely to prevent stocks from gaining traction anytime soon,
according to analysts.
A research center with Woori Investment & Securities Co. advised investors to
sell unprofitable stocks and maintain conservative stock portfolios, saying that
"not enough measures have been taken to kickstart the slowing economy."
ygkim@yna.co.kr
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