S. Korean stocks eye 1,200 mark next week: analysts

SEOUL, Dec. 20 (Yonhap) -- South Korea's bourse may try to regain the 1,200 mark
next week on the strength of a stable foreign exchange rate and a recent rally in
tech-related stocks, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,180.97 on
Friday, up 6.99 percent, or 77.15 points, from the previous week.
Investor sentiment was buoyed by the government's decision to pour money into the
financial sector to alleviate an ongoing liquidity crunch and the steady
appreciation of the Korean won versus the U.S. dollar.
An injection of fresh funds could allow lenders to offer more loans to companies
and consumers, while helping to cut interest rates.
The spike in global semiconductor prices also bolstered hightech shares. Rises in
prices for memory chips could be a boom for South Korean companies like Samsung
Electronics and Hynix Semiconductor.
In the coming week experts say a steady influx of funds into the market and
overall stability in economic and market conditions could allow the KOSPI to
reach the 1,200 mark, although they remained guarded against inflating
expectations.
"The current rise in prices can be considered as both a technical and
liquidity-triggered rally that could push stocks up to the 1,200 mark, but
anything beyond that may not be sustainable," said Lee Seung-woo, an analyst at
Daewoo Securities.
Others also said that while the KOSPI may move up next week, it may not be wise
to increase stock holdings because there may not be enough good news to sustain
growth in the midst of a sluggish global economy.
yonngong@yna.co.kr
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