South Korea's bullish stock market is expected to take a breather after rising more than three percent over the past week but the longer-term outlook is still good, analysts said Friday. Amid a lack of further upward momentum, the KOSPI index is likely to move within a limited band around 1,400 points in the coming week, said SK Securities analyst Won Jong-Hyuck.
"Foreign investors are baulking at buying more after the index passed 1,400 points and the won strengthened to around 1,250 won a dollar, while the result of the stress tests on US banks has already been factored in," Won told AFP. The index closed Friday at 1,412.13, up 42.77 points or 3.12 percent on April 30. J.J. Park, an analyst at Taurus Investment and Securities, told Dow Jones Newswires that various data indicates the economy is in the process of normalisation.
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