S. Korean shares likely to face correction next week

SEOUL, Jan. 10 (Yonhap) -- South Korea's stock market is expected to face downward pressure next week as investors lock in gains after two consecutive weeks of rises and remain cautious about fourth-quarter corporate earnings, analysts said Saturday.

"Given the deepening economic slump, it is hard to predict whether the market
will continue to rise down the road," said Kim Choong-hyun, an analyst at
Goodmorning Shinhan Securities.
Led by heavy buying of big-cap shares by foreign investors, the KOSPI, the
country's key stock index, gained 23.56 points or 2.04 percent to close at
1,180.96 on Friday.
Analysts said trading is likely to remain weak on concerns about poor corporate
earnings and weak economic data at home and abroad.
POSCO, SK and other major companies are scheduled to report their fourth-quarter
business results starting next week.
"There are concerns about dismal corporate earnings and economic reports amid the
deepening recession," said Kang Hyun-chul, an analyst at Woori Investment &
Securities. "The market is expected to fall further down the road."
The U.S. stock market dropped Friday following a bleak report that the world's
largest economy shed 2.6 million jobs in 2008, the biggest annual job loss since
1945.
The Dow Jones Industrial Average closed Friday down 4.8 percent for the week, at
9,034.69, after gaining six percent the prior week.
But some analysts said the local bourse will not drop sharply on hopes of further
rates cuts and the inauguration of the new U.S. administration.
The Bank of Korea, the country's central bank, on Friday cut its key interest
rate by 0.5 percentage point to a record of 2.5 percent to revive growth in
Asia's fourth-largest economy amid the global recession.
sam@yna.co.kr
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