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Seoul stocks likely to further advance next week on stimulus: analysts

(Yonhap)
(Yonhap)

South Korean stocks are expected to continue to build up gains next week, buoyed by hopes for the reopening of the US economy and the peak of the coronavirus outbreak, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,914.53 points on Friday, compared with 1,860.70 points from a week ago.

The KOSPI started off on a weak note on Monday by dropping nearly 2 percent on COVID-19 woes before rebounding on Tuesday and Thursday. The market was closed on Wednesday for the national parliamentary elections.

The index rose more than 3 percent on Friday to hover above the 1,900 level for the first time in more than one month as foreigners scooped up major large-cap shares, ending a selling spree of 30 consecutive sessions.

Analysts said the local stock market next week may be affected by various stimulus measures by major economies including the United States and China.

Kim Byung-yeon, an analyst at NH Investment & Securities Co., said upside factors next week include global policy coordination to fight the COVID-19 pandemic that has appeared to slow down in some parts of the world.

But Kim said there are worries that COVID-19 could further spread again in the US and Europe, which, coupled with various poor economic data, could hurt the market. (Yonhap)
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