Seoul shares to come under selling pressure on N. Korean risks

SEOUL, April 15 (Yonhap) -- South Korean stocks are anticipated to trade in negative terrain next week amid the prolonged uncertainties over the geopolitical tension in the Korean Peninsula, analysts said Saturday.

As Pyongyang celebrates the 105th birthday of late state founder Kim Il-sung on Saturday, the international market has been eyeing potential provocations to be made by North Korea, which may also include a nuclear test.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,134.88 on Friday, down 0.78 percent from the previous week.

On Monday, the South Korean stock market started lower on the rising geopolitical tension. The South Korean military confirmed that the U.S. was sending a nuclear-powered aircraft carrier battle group to waters near the Korean Peninsula due to worries over the North's potential provocations.

Concerns over a potential clash with North Korea also have been fueled by the Donald Trump administration's recent air strike in Syria, sending the local stock market lower through the week.

Foreigners offloaded a net 264.4 billion won, while individuals bought a net 3.6 billion won. Institutions sold more shares than they bought at 217.5 billion won.

Next week, analysts said the market is expected to continue to remain under selling pressure on lingering geopolitical concerns, although investor sentiment may improve on the back of robust earnings results by major firms.

"(The investors) are likely to take a wait-and-see stance on the North Korean policies of the United States and China," said Kim Byung-yeon, an analyst at NH Investment & Securities Co. "But rather than just risks being expanded, the market is continuing towards stability."

colin@yna.co.kr
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