Seoul stocks likely to suffer extended loss next week on inflation fears

Seoul (South Korea), May 16: South Korean stocks are likely to suffer an extended slide next week following this week's retreat, as fears about early post-pandemic inflation continue to weigh on the market.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 3,153.32 points on Friday, down 1.37 percent from 3,197.2 points a week ago.
On the back of disappointing U.S. jobs data in April that eased woes over inflationary pressure, the local stock market started with an advance.
However, the stock index slumped more than 1 percent for three consecutive days, tracking a major tech plunge on Wall Street. Investor worries of U.S. tapering were fueled by soaring commodity prices and a steep expansion of April consumer prices, the fastest since 2009.
Stock prices rebounded on Friday, but analysts said the adjustment from inflation woes is likely to continue through next week.
"Foreign sell-offs are increasing in the Asian stock markets where the tech portion is high," NH Investment & Securities analyst Kim Young-hwan said.
This week, foreigners dumped 6.3 trillion won (US$5.6 billion) worth of local stocks on the main bourse, while individuals bought a net 7.2 trillion won. Institutions sold a net 597 billion won.
Source: Yonhap