The South Korean stock market is likely to continue its downward march this week as investors remain cautious over the volatile currency, downbeat corporate earnings, and foreign investors’ massive sell-offs, analysts said Saturday.

The benchmark Korea Composite Stock Price Index lost some 2.5 percent to close at 1,976.16 last Thursday over the previous week, the lowest since June 23 when it closed at 1,974.92 points, as foreign investors dumped market heavyweights amid increased currency risks and corporate earnings woes. The market was closed Friday for the National Foundation Day holiday.

Utility, telecom and textile sectors were among the gainers last week, while machinery, automakers, and steelmakers suffered losses.

“Foreign sell-offs and a downbeat earnings outlook will hamper the local stock market’s rise this week,” said Noh Aram, an analyst at KDB-Daewoo Securities.

The Korean won fell to near a six-month low against the U.S. dollar last week on expectations that the U.S. Fed may move up its timetable for the much expected rate hike, while other major economies such as Japan maintain their monetary easing steps, prodding foreign investors to step back from emerging markets.

South Korean companies are bracing for weakened earnings for the third quarter, with Samsung Electronics likely to suffer another earnings shock and oil refiners weathering low oil prices.

The tech giant is poised to release its third-quarter earnings on Tuesday. (Yonhap)