Seoul shares expected to trade lower on US policy woe

South Korean stocks are expected to continue trade bearish next week as the United States Federal Reserve's remark to cut quantitative easing will dent investors' sentiment, analysts said Saturday. The benchmark Korea Composite Stock Price Index (KOSPI) closed down 66.41 points, or 3.52 percent, to 1,822.83 on Friday from the previous week. The KOSPI lost ground due mainly to the U.S. Federal Open Market Committee (FOMC) meeting held this week which had an adverse impact on investors' sentiment as it implied that the U.S. central bank is likely to start slowing the pace of its bond purchase program this year as its economy improves, Yonhap news agency reported. Bernanke said that the Fed could end the stimulus program by mid-2014 after continuing to gradually scale back the pace of the purchase. Analysts said foreign investors offloaded shares on the emerging markets as a reduction in the economic stimulus is expected to result in a stronger U.S. dollar against other currencies. Weekly foreign net selling totaled 1.5 trillion won (US$1.38 billion). In contrast, retail investors purchased a net 341.1 billion won and institutions scooped up a net 1.26 trillion won. Analysts said the KOSPI is expected to continue trade lower next week on rising concerns over a weaker liquidity in the local stock market amid the Federal Reserve's remark.