S. Korean stocks expected to face greater volatility next week

SEOUL, Nov. 13 (Yonhap) -- South Korea's stock market is expected to face greater
volatility in trading next week due to the upcoming Monetary Policy Committee
(MPC) meeting to decide on the key interest rate analysts said Saturday.
The country's key stock index, the KOSPI, closed at 1,913.12 on Friday, down 1.33
percent from 1,938.96 reached a week earlier. The market surpassed the 1,970 mark
at one point but started to lose steam as foreign investors started selling their
holdings.
Market experts said the meeting by the Bank of Korea's MPC on Tuesday and the
release of key U.S. economic indicators throughout the week will have significant
impact on the market.
They, however, predicted that the local bourse should not experience any sudden
drops because moves by the United States to implement quantitative easing will
allow more money to flow into the global stock market, which could bolster
prices.
"There are concerns about too much money being funneled into emerging markets,
but this trend led by funds being poured into China should continue for the time
being," said Kwon Yang-il, an analyst at Woori Investment & Securities Co.
Others said investors may move to buy up shares in the new week to take advantage
of lower prices, although new purchases may be centered on blue chip firms rather
than medium-sized companies.
yonngong@yna.co.kr
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