Seoul bourses lack momentum; Events surrounding LG Card still.

(From The Korea Herald)

By Rafael Nam The nation's main stock index is expected to decline moderately this week given the lack of momentum to sustain strong gains.

Last week, the KOSPI rose 3.3 percent to 796.18 points despite a plunge Monday, as investors were lifted by strong U.S. economic data, including an upward revision of its third-quarter gross domestic product expansion to 8.2 percent annual growth, its best quarter in almost 20 years, and rising consumer confidence.

On the home front, October's stronger-than-expected 2.4 percent on- month industrial production growth helped push the KOSPI higher Friday.

However, analysts note that the nation's main stock market may retreat a little bit given that U.S. bourses have already priced in good economic data, while problems from LG Card Co.'s liquidity crunch linger on.

"It's hard to justify increased momentum in the U.S. after its strong third-quarter data, while problems related to LG Card are likely to linger on this week," said an analyst at a major brokerage.

Market watchers also noted that foreign investors, the main drivers of the KOSPI rally for a significant part of the year, are expected to decrease their purchases of domestic shares ...