South Korean shares are expected to come under pressure next week as lingering concerns over US President Donald Trump’s policies, coupled with increased currency volatility, may continue to sap market sentiment, analysts said Saturday.

The benchmark Korea Composite Stock Price Index closed at 2,080.58 points Friday, slightly up from 2,075.08 points a week earlier.

This week, the local stock market started a tad higher on hopes for the Trump administration’s tax policies, and the US Fed Chair Janet Yellen‘s positive remarks on the world’s No. 1 economy helped the Korean stock market eke out slight gains.

But the local stock market remained sluggish throughout the week, although overseas stock markets enjoyed relatively high returns.

In particular, the arrest of Samsung Group’s de facto chief Lee Jae-yong over a bribery scandal negatively affected investor sentiment Friday.

“Due to lingering woes over currency volatility, the Fed’s stance on rate hikes may prod investors to take to the sidelines,” said Jo Yon-ju, an analyst at NH Investment & Securities.

Analysts said investors are advised to pick up economic cycle-sensitive stocks, as the local stock market is expected to be led by them in the future.

Next week is also packed with a set of key economic data and events, including the Federal Open Market Committee’s minutes for January.

The Bank of Korea, South Korea’s central bank, is scheduled to hold a rate-setting meeting Thursday. (Yonhap)