ID :
65638
Sat, 06/13/2009 - 19:28
Auther :
Shortlink :
https://oananews.org//node/65638
The shortlink copeid
Seoul bourse to move in tight range amid economic uncertainty
SEOUL, June 13 (Yonhap) -- South Korea's stock market is expected to move in a
tight range next week as investors remain on the sidelines amid lingering
uncertainty over an economic recovery and corporate earnings, analysts said
Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed this week at
1,428.59, up 33.88 points, or 2.43 percent, from the previous week, the first
advance in three weeks.
The market got off to a weak start due to growing geopolitical risks after the
United States warned that North Korea could be relisted as a state sponsor of
terror. But the index gained momentum on massive foreign purchases later in the
week.
However, there seem to be few market-moving events scheduled for next week.
Investors will likely remain cautious until uncertainty is lifted to some extent
about the economic outlook and for corporate earnings reports to prove that
companies are withstanding the protracted global slump, analysts said.
Investors remain uncertain about whether the economy has really seen the worst of
the crisis or is still in a deep slump, as indicators are sending mixed signals.
A contraction in industrial output is abating, a sign that manufacturers are
ramping up production on expectations for a rebound. Consumer sentiment is also
improving.
According to South Korea's central bank, the local economy managed to avert a
technical recession with its gross domestic product rising 0.1 percent in the
first quarter from three months earlier, after falling 5.1 percent in the last
quarter of 2008.
Opinions are still divided over the pace of an economic recovery, with
policymakers warning that optimism is premature as exports and domestic demand
still remain in a slump.
Rising oil prices are also making it tough for local companies that depend
heavily on overseas crude and other materials for production, analysts said.
"The market needs not just large-scale foreign purchases but also improved
corporate earnings and better outlooks for an economic rebound to move beyond the
current range," said Kim Jung-hyun, an analyst at Goodmorning Shinhan Securities.
"As the corporate earnings season is drawing closer, investors will have a chance
to reduce some uncertainty, but until then, we cannot predict a clear direction
in the market," he added.
kokobj@yna.co.kr
(END)
tight range next week as investors remain on the sidelines amid lingering
uncertainty over an economic recovery and corporate earnings, analysts said
Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed this week at
1,428.59, up 33.88 points, or 2.43 percent, from the previous week, the first
advance in three weeks.
The market got off to a weak start due to growing geopolitical risks after the
United States warned that North Korea could be relisted as a state sponsor of
terror. But the index gained momentum on massive foreign purchases later in the
week.
However, there seem to be few market-moving events scheduled for next week.
Investors will likely remain cautious until uncertainty is lifted to some extent
about the economic outlook and for corporate earnings reports to prove that
companies are withstanding the protracted global slump, analysts said.
Investors remain uncertain about whether the economy has really seen the worst of
the crisis or is still in a deep slump, as indicators are sending mixed signals.
A contraction in industrial output is abating, a sign that manufacturers are
ramping up production on expectations for a rebound. Consumer sentiment is also
improving.
According to South Korea's central bank, the local economy managed to avert a
technical recession with its gross domestic product rising 0.1 percent in the
first quarter from three months earlier, after falling 5.1 percent in the last
quarter of 2008.
Opinions are still divided over the pace of an economic recovery, with
policymakers warning that optimism is premature as exports and domestic demand
still remain in a slump.
Rising oil prices are also making it tough for local companies that depend
heavily on overseas crude and other materials for production, analysts said.
"The market needs not just large-scale foreign purchases but also improved
corporate earnings and better outlooks for an economic rebound to move beyond the
current range," said Kim Jung-hyun, an analyst at Goodmorning Shinhan Securities.
"As the corporate earnings season is drawing closer, investors will have a chance
to reduce some uncertainty, but until then, we cannot predict a clear direction
in the market," he added.
kokobj@yna.co.kr
(END)
