South Korea's stock market is forecast to trade bearish in 2015 in comparison to this year, analysts said Wednesday, stymied by a lack of growth momentum in local firms as well as unfavorable market conditions abroad. 
   
The median of estimates from six local brokerage houses put the benchmark Korea Composite Stock Price Index (KOSPI) at a high of
2,200 and a bottom line of around 1,847 next year.
  
Both high and low forecasts are markedly below those predicted for 2014, with the higher end of the spectrum lacking by more than 118 points, and the lower end deeper by 40 points.
   
Analysts attributed their downgraded outlooks to the lagging earnings reports of local firms, along with unfavorable overseas market conditions. 
  
"Currently, there are low expectations for the KOSPI's 2015 performance," said Kim Jae-hong, an analyst at Shinyoung Securities Co. "Due to the earnings shock seen during the fourth quarter of 2013 as well as the plunging performance of Samsung Electronics Co. this year, the KOSPI has been hovering far below the original consensus, leading to overall skepticism of the Seoul bourse."
  
Samsung Electronics, whose market cap took up 15.55 percent as of Monday, had seen its third-quarter profits fall to a three-year low, amid increasing pressure from its rival Apple Inc. and up-and-coming Chinese competitors. 
   
Citing the protracted weakening of the yen, Kim added that "There's not much expectation for an improvement in the growth momentum of South Korean firms."
   
The Bank of Japan announced further monetary easing last week, sending the yen's value sharply down against the greenback. The unexpected move from the Japanese central bank raised concerns as South Korean exporters compete directly with Japanese rivals in overseas markets.
   
Kim Hyung-ryul, a researcher at Kyobo Securities Co., echoed this view, adding that the slowdown of Samsung's earnings is likely to have a negative effect on next year's stock market. 
   
"There needs to be another industry that can make up for Samsung's loss, but the demand for the auto sector is unlikely to improve in the short term, and we're also unsure whether the financial industry may be able to continue to back up the tech giant's earnings slump in the upcoming year," he said. 
   
During the second half of 2015, however, analysts forecast an upward trend in the main local bourse, after uncertainties about the U.S. economy and its monetary policies are abated, as well as the possible gradual recovery in the eurozone. 
  
By sectors, construction companies were seen as possible market leaders on the back of the government's eased housing regulations.
Financial firms and IT companies were also among the list of recommended sectors. 
   
Software firms and household goods producers were recommended as possible winners for next year as well, as both are likely to register improved earnings despite fluctuating market conditions. 
  
The KOSPI closed at 1,935.19 on Tuesday, down 1.63 percent from the 1967.19 tallied at the end of the first trading session of this year. The index's yearly bottom came on February 4, when it dropped to 1,885.53. (Yonhap)