South Korean stocks may lose more ground this week as investor sentiment remains weak due to a bleak corporate earnings outlook and unfavorable market factors, analysts said.
The benchmark Korea Composite Stock Price Index closed at 1,938.54 on Friday, down 0.39 percent from a week ago, as a foreign selling binge pummeled shipbuilders and investor sentiment lost steam ahead of the release of the U.S. jobs report.
The key index extended its losing streak to three sessions, falling below the 1,940 level for the first time in four months.
“The valuation of local shares is not far lower than that of shares in other overseas equity markets, and the fourth-quarter earnings of local companies are widely expected to be not good,” said Kang Hyun-gie, an analyst at I’M Securities & Investment Co.
Such factors may send the key index lower this week, he added. Most local analysts predict weaker-than-expected fourth-quarter earnings in 2013 for major South Korean companies, leaving the local stock market bearish. (Yonhap News)