Korea’s benchmark KOSPI index is expected to gradually rebound toward the 2,000 mark in about two weeks, as few downside risks remain that can undermine investor sentiment in the short term, analysts said.

“We expect to see a gradual rebound in share prices. I think it will be possible (for the KOSPI) to reach 2,000 in the short term of one to two weeks,” said Samsung Securities analyst Kwak Joong-bo.

The KOSPI fell from 2,004.89 on March 29 and has yet to recover. He added that most negative factors ― such as the Bank of Korea’s key rate freeze, North Korea’s missile threat, Japan’s yen depreciation and weak earnings of GS Engineering & Construction ― have already been reflected in the stock market.

“GS E&C’s earnings shock had considerably affected market sentiment, making investors confused and skeptical over Korean stocks,” Kwak said.

Korea’s No. 4 builder GS E&C announced last Wednesday disappointing first-quarter earnings with an operating loss of more than 535 billion won ($473 million) due to increased overseas competition on low-priced orders, while costs of materials for construction continued to grow.

GS E&C shed 15 percent, the market’s daily limit, at 35,700 won on Friday, making it the worst equity performer on the MSCI Asia Pacific Index. The KOSPI lost 1.31 percent at 1,924.23.

Also, the central bank’s key rate freeze at 2.75 percent for the sixth straight month may have made Korea relatively unattractive for investment compared to other Asian economies such as Japan, whose monetary easing led investors to be bullish on Tokyo stocks.

Mirae Asset Securities analyst Lee Jae-hoon, however, said he expects the KOSPI to reach 2,000 in three weeks, should some large-cap shares rebound after hitting bottom and peninsular tension stop escalating.

“Overseas investors have been net buying Korean shares for three consecutive days since last Wednesday, albeit some steep drops in blue chips. But they have already hit bottom this month,” he said.

General consensus showed analysts recommending buys on commodity shares, and consumer-related food and beverage company stocks.

By Chung Joo-won (joowonc@heraldcorp.com)