Seoul - Yonhap
South Korean shares are expected to gain ground next week as the international community moves to resolve the eurozone crisis, analysts said Saturday. The forecast comes as the benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,835.40 on Friday, up 75.63 points, or 4.3 percent, from a week earlier. The index had risen throughout the week after Germany and France, the main economic powers in Europe, said they are speeding up efforts to create a \"firewall\" to prevent fallouts in some countries from affecting the entire European banking sector. Such moves have helped raise market confidence and alleviate concerns following the credit downgrade of Italy and Spain. They also helped relieve growing worries over double-dip recessions in major economies around the world. Market watchers said they are keeping watch on developments leading up to the European summit meeting planned for Oct. 23. European leaders are expected to come up an understanding on how best to cope with and contain the fiscal crisis. Local experts, however, cautioned that any gains on the bourse next week will be limited in scale. \"Gains in the index will be limited until the end of the month,\" said Park Seung-jin, an analyst at Samsung Securities Co. He claimed that this situation should continue at least until a resolution is made on how countries will tackle the eurozone crisis. Park said that investors may shed holdings to take advantage of the gains in stock prices, which would affect the KOSPI. Others such as Choi Yong-ho, an analyst at Woori Investment and Securities Co., said investors should keep close tabs on third-quarter earnings reports that are due this month. He added investors should monitor share prices of semiconductors, autos and auto parts, which may do well in the coming months.