SEOUL: The South Korean stock market is anticipated to remain sluggish next week due to prolonged uncertainties over the Greek debt issue, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,090.26 points on Friday, up 2.1 percent from a week earlier.
This week, Seoul shares have started higher as investors highly anticipated that Greece would make a compromise with its international creditors over its debt rollover issue which has been weighing down on the global financial market.
The eased concerns over the outbreak of Middle East Respiratory Syndrome (MERS) in Asia’s fourth-largest economy, coupled with hopes for an extra budget, also added to investors’ improved sentiment, allowing the market to gain ground further.
But the KOSPI lost ground on Thursday due to little progress over the Greek bailout negotiations.
Analyst said the concerns over debt-ridden eurozone state will continue to weigh down on the local stock market.
“Although there will be repetitive negotiations for a Greek bailout, it is unclear they will reach a resolution,” said Ko Seung-hee, an analyst at Daewoo Securities Co.
The weak second-quarter earnings outlook will also work to sap investor sentiment, according to the analyst.
Foreign investors offloaded a net 67.77 billion won (US$60.8 million) this week, with retail investors also selling more shares than they bought at 86.67 billion won. Institutions scooped up a net 155.7 billion won.
Medical, banks and construction firms were among the major leaders this week, while electronics, chemicals and logistics shares lost ground.
