ID :
203854
Sat, 08/27/2011 - 14:16
Auther :
Shortlink :
https://oananews.org//node/203854
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Seoul shares likely to gain ground next week: analysts
SEOUL, Aug. 27 (Yonhap) -- The South Korean stock market is likely to gain momentum next week, lifted by remarks by the head of the Federal Reserve that the U.S. central bank still has tools to stimulate its weak economy, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) wrapped up this week at 1,778.95, up 1.95 percent from a week earlier.
The KOSPI sustained volatile trading this week as it fell to a weekly low of 1,710.70, hit by weaker U.S. economic data and the eurozone sovereign debt crisis. But the Seoul bourse regained some ground later this week on sustained money inflows from institutional investors on hopes for additional U.S. stimulus steps.
Fed Chairman Ben Bernanke on Friday stopped short of hinting at the third round of quantitative easing, known as QE3 in markets, to support the weakening economy at a conference in Jackson Hole, Wyoming.
But the chairman said the central bank still has policy tools to stimulate the economy and will extend its September policy meeting to two days to mull its options.
Analysts said the Seoul stock market may get a short-term boost from Bernanke's speech as he left the door open for several options to shore up the economy.
"The Fed may unveil some boosting measures in September. The market also may get some kind of boost due to his assessment that the U.S. economy is weaker than expected, but the growth will likely improve in the second half," said Yoon Ji-ho, a senior analyst at Hanwha Securities Co.
But experts also cast caution about underlying risks stemming from the slowing global economy and the eurozone debt crisis.
"Amid increased worries about the global slowdown, we need to focus on a raft of economic data due out next week at home and abroad," said Lee Seung-woo, an analyst at Daewoo Securities Co. "Situations surrounding highly indebted eurozone countries nearly remained unchanged."
Next week, South Korea plans to unveil its July industrial output data on Wednesday and consumer price figures for August on Thursday.
The benchmark Korea Composite Stock Price Index (KOSPI) wrapped up this week at 1,778.95, up 1.95 percent from a week earlier.
The KOSPI sustained volatile trading this week as it fell to a weekly low of 1,710.70, hit by weaker U.S. economic data and the eurozone sovereign debt crisis. But the Seoul bourse regained some ground later this week on sustained money inflows from institutional investors on hopes for additional U.S. stimulus steps.
Fed Chairman Ben Bernanke on Friday stopped short of hinting at the third round of quantitative easing, known as QE3 in markets, to support the weakening economy at a conference in Jackson Hole, Wyoming.
But the chairman said the central bank still has policy tools to stimulate the economy and will extend its September policy meeting to two days to mull its options.
Analysts said the Seoul stock market may get a short-term boost from Bernanke's speech as he left the door open for several options to shore up the economy.
"The Fed may unveil some boosting measures in September. The market also may get some kind of boost due to his assessment that the U.S. economy is weaker than expected, but the growth will likely improve in the second half," said Yoon Ji-ho, a senior analyst at Hanwha Securities Co.
But experts also cast caution about underlying risks stemming from the slowing global economy and the eurozone debt crisis.
"Amid increased worries about the global slowdown, we need to focus on a raft of economic data due out next week at home and abroad," said Lee Seung-woo, an analyst at Daewoo Securities Co. "Situations surrounding highly indebted eurozone countries nearly remained unchanged."
Next week, South Korea plans to unveil its July industrial output data on Wednesday and consumer price figures for August on Thursday.
