Published : 2013-11-02 12:34
Updated : 2013-11-02 12:34
South Korean stocks are expected to trade lower next week, dented by worries that China may take austerity measures at its political meeting to keep inflation under control, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,039.42, up 0.1 percent from a week earlier. The main index almost touched the 2,060 mark on Wednesday on the back of a strong foreign buying spree that had continued for 44 consecutive sessions, starting on Aug. 28 until Oct. 30.
The foreign buying marked the longest ever since the local stock market was established.
The brisk foreign buying came amid expectations that the U.S. Federal Reserve will keep the delay of its stimulus program until March next year. Such a postponement of U.S. policy has been the main driver of recent stock rallies on both Wall Street and in Seoul.
Next week, Beijing is scheduled to hold a policy-setting meeting from Nov. 9-12, during which the world's second-largest economy is expected to roll out reform measures to tighten the economy in a bid to rein in inflation and the surge in property prices.
"China may revise down its growth outlook for 2014 to an annual 7 percent from 7.5 percent, which will weigh down cyclical stocks in South Korea," said Han Chi hwan, an analyst at KDB Daewoo Securities Co. Beijing is the largest trading partner for Seoul.
This week, foreigners bought a net 400 billion won worth of local equities, while institutions dumped a net 450 billion won.
Tech stocks were the biggest gainers with a 2.4 percent rise, followed by pharmaceutical issues with a 1.5 percent gain.
In contrast, shares of shipping companies tumbled 6.8 percent, ith telecom firms losing 3 percent and banks falling 1.6 percent. (Yonhap News)