ID :
201006
Sat, 08/13/2011 - 09:00
Auther :
Shortlink :
http://m.oananews.org//node/201006
The shortlink copeid
Seoul shares to face lingering uncertainties next week
SEOUL, Aug. 13 (Yonhap) -- South Korea's financial regulators are expected to try for a rebound on the stock markets next week, but gains are likely to be limited due to persistent external uncertainties over the U.S. economy and the eurozone debt crisis, analysts said Saturday.
The KOSPI, the country's key stock index, plunged 7.73 percent, or 150.44 points, this week to close at 1,793.31 on Friday, pummeled by a hefty 3.1 trillion won (US$2.9 billion) sell-off by foreigners. The index closed below the 1,800 mark for the first time since September 2010.
Analysts said they expect regulators to try to get the KOSPI to bounce back with growing views that the index has neared its bottom, but upward momentum is likely to be limited due to lingering external uncertainties.
"Since worries on the global economy have not completely been resolved, investors need to keep in mind that the stock market will likely see a slow rebound," said Lee Seung-woo, an analyst at Daewoo Securities Co.
The local stock market suffered one of its most turbulent weeks ever following Standard & Poor's downgrade of the U.S. credit rating. The one-notch cut from a top-tier "AAA" to "AA+" sent ripples across global markets, spooking investors to flee for safer assets.
The U.S. Federal Reserve's pledge to keep its current record-low interest rates till mid-2013 and the Bank of Korea's decision to freeze the key interest rate had little impact on the local stock market, they said.
Analysts, meanwhile, said the KOSPI in the coming week is unlikely to see the huge drops it suffered this week.
"The market is set to face continued market volatility, but a sharp fall is unlikely," said Cho Byung-hyun, an analyst at Tong Yang Securities Inc. "A series of U.S. economic data is set to be announced next week, but it is believed there won't be surprises that are big enough to shake the markets."
The local stock market will be closed on Monday for the National Liberation Day holiday.
The KOSPI, the country's key stock index, plunged 7.73 percent, or 150.44 points, this week to close at 1,793.31 on Friday, pummeled by a hefty 3.1 trillion won (US$2.9 billion) sell-off by foreigners. The index closed below the 1,800 mark for the first time since September 2010.
Analysts said they expect regulators to try to get the KOSPI to bounce back with growing views that the index has neared its bottom, but upward momentum is likely to be limited due to lingering external uncertainties.
"Since worries on the global economy have not completely been resolved, investors need to keep in mind that the stock market will likely see a slow rebound," said Lee Seung-woo, an analyst at Daewoo Securities Co.
The local stock market suffered one of its most turbulent weeks ever following Standard & Poor's downgrade of the U.S. credit rating. The one-notch cut from a top-tier "AAA" to "AA+" sent ripples across global markets, spooking investors to flee for safer assets.
The U.S. Federal Reserve's pledge to keep its current record-low interest rates till mid-2013 and the Bank of Korea's decision to freeze the key interest rate had little impact on the local stock market, they said.
Analysts, meanwhile, said the KOSPI in the coming week is unlikely to see the huge drops it suffered this week.
"The market is set to face continued market volatility, but a sharp fall is unlikely," said Cho Byung-hyun, an analyst at Tong Yang Securities Inc. "A series of U.S. economic data is set to be announced next week, but it is believed there won't be surprises that are big enough to shake the markets."
The local stock market will be closed on Monday for the National Liberation Day holiday.
