ID :
202419
Sat, 08/20/2011 - 11:14
Auther :
Shortlink :
https://oananews.org//node/202419
The shortlink copeid
Bearish mood unlikely to vanish from local bourse next week
SEOUL, Aug. 20 (Yonhap) -- South Korea's stock market is expected to continue to remain bearish next week on growing fears of a fresh U.S. recession and the debt crisis worsening in Europe, analysts said Saturday.
The KOSPI, the country's benchmark stock index, lost 2.7 percent, or 48.43 points, this week to close at 1,744.88 on Friday. The index rallied 4.83 percent in the beginning of the week but was eaten up by persistent Eurozone debt issues and dismal U.S. growth data. On Friday, the KOSPI fell a record 6.22 percent, taking a heavy toll on large-cap exporters of techs, automakers and shipbuilders.
Analysts said that the market is looking ahead to comments from U.S. Federal Reserve Chairman Ben Bernanke at a meeting in Jackson Hole, Wyoming, but the situation will not improve next week as policymakers in the U.S. and Europe have no effective cards to soothe feared investors.
"The U.S. Fed would not satisfy the market as it is still skeptical of the third round of quantitative easing," said Lee Seung-woo, an analyst at Daewoo Securities Co.
Earlier this week, global investment banking giant Morgan Stanley cut its forecast for the world's economic growth to 3.9 percent from 4.2 percent, adding to the fears of further global economic slowdown.
Meanwhile, the U.S. stock market closed lower this week, ending a fourth straight week of losses.
The Dow Jones industrial average lost 1.57 percent to close at 10,817.65 on Friday. The tech-laden Nasdaq Composite Index was down 1.62 percent to 2,341.84.
The KOSPI, the country's benchmark stock index, lost 2.7 percent, or 48.43 points, this week to close at 1,744.88 on Friday. The index rallied 4.83 percent in the beginning of the week but was eaten up by persistent Eurozone debt issues and dismal U.S. growth data. On Friday, the KOSPI fell a record 6.22 percent, taking a heavy toll on large-cap exporters of techs, automakers and shipbuilders.
Analysts said that the market is looking ahead to comments from U.S. Federal Reserve Chairman Ben Bernanke at a meeting in Jackson Hole, Wyoming, but the situation will not improve next week as policymakers in the U.S. and Europe have no effective cards to soothe feared investors.
"The U.S. Fed would not satisfy the market as it is still skeptical of the third round of quantitative easing," said Lee Seung-woo, an analyst at Daewoo Securities Co.
Earlier this week, global investment banking giant Morgan Stanley cut its forecast for the world's economic growth to 3.9 percent from 4.2 percent, adding to the fears of further global economic slowdown.
Meanwhile, the U.S. stock market closed lower this week, ending a fourth straight week of losses.
The Dow Jones industrial average lost 1.57 percent to close at 10,817.65 on Friday. The tech-laden Nasdaq Composite Index was down 1.62 percent to 2,341.84.
