SEOUL-- South Korean stocks are likely to face a further slide next week, although a technological rebound may appear following a more than 3 percent weekly drop, as investors are increasingly worried over earnings by major chipmakers.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 3,171.29 points Friday, down 3.03 percent from a week ago.

The KOSPI retreated for a seventh session Friday as foreigners continued to dump chipmakers on a gloomy forecast for chip demand and concerns about the possibility of an early tapering by the U.S. Federal Reserve.

Investor sentiment also weakened on the extended virus curbs here amid spiking cases.

Foreigners net sold 7 trillion won (US$6 billion) on the main bourse this week, while retail investors bought 8.9 trillion won. Institutions offloaded a net 1.4 trillion won.

Analysts expected that the KOSPI would be boxed in a slightly lower range next week without major events.

They said investors are also skeptical about the duration of the global economic recovery.

"The strong macroeconomic momentum in the first half of this year is fanning investor concerns that the pace of recovery from the pandemic may wane down the road," NH Investment & Securities analyst Kim Young-hwan said.

"In order to put out such economic peak-out worries, investors may have to adjust -- and are still adjusting -- their expectations (of a standard pace of recovery)," Kim said.

A recent slowdown in economic indicators may be disappointing to investors but is unlikely to herald a major stock plunge, he added.

Source: Yonhap News Agency