No Major Stock Movements Expected Here This Week

Major indexes ended higher for the second consecutive session Friday. The Korea Composite Stock Price Index of the Korea Stock Exchange edged up 1.68 points or 0.2 percent on Friday to close at 583.06 points. The Kosdaq index closed the week's last session slightly higher on Friday at 81.72 points, up 0.31 points or 0.3 percent, maintaining its 80-point-plus level. Some 547 million shares were traded on the main exchange Friday, while 450 million shares changed hands on the Kosdaq in active trading. Positive and negative factors had equal influence on Korean stock markets last week and no major fluctuations occurred in either index.

On expectations that General Motors might move to acquire Daewoo Motors, stock of Daewoo Motor Sales Corporation and Ssanyong Motors both reached their daily ceilings on the KSE for two consecutive days. Supervised issues, including those of Korea Express and Haitai Confectionary led the Kospi and almost reached their ceilings on Friday. Beverage stocks also ended higher on Friday due to seasonal factors. Top-buys by institutional investors included Hansol Paper and Dae Shin Securities, while they were net sellers of Hanil Synthetic Fiber and Haitai Confectionary.

Foreign investors were the market's net buyers in early trading Friday. By afternoon, though, however, foreign buying slackened as overseas investors seemed to be waiting for next week's major U.S. economic indicator announcements and the results of the Federal Reserve's Federal Open Market Committee meeting. Before the last bell on Friday, the bulk of net selling was being done by foreign investors. Automobile issues, including Daewoo and Hyundai Motors topped the buying list of foreign investors, while they were net sellers of Samsung Heavy Industries, Dae Shin Securities and Hyundai Securities.

Korean stock markets are expected to undergo no major movements next week. Both the Kospi and Kosdaq indexes are expected to maintain their current level. Although the Fed is expected to lower its call rate next week during its open market committee meeting, no positive response is anticipated on the part of U.S. stock markets. Further, other major U.S. economic indicators will be announced next week. The performances of overseas stock markets, especially those in the United States, will continue to influence both the Kospi and the Kosdaq index. Daewoo Motor will likely be one of the most active issues on the Kospi next week because of continuing speculation of an impending takeover by GM of the ailing auto maker. Telecommunication, logistics and seasonal issues are expected to lead the market.

The writer is a director of Kiwoom.com Securities Co., Ltd.

by JoongAng Ilbo