S. Korean bourse eyes to rebound next week: analysts

SEOUL, July 3 (Yonhap) -- The South Korean bourse will likely gain ground next
week as the market struggles to rebound from the previous week's decline, thanks
to receding jitters over China, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) ended the week 58.02
points, or 3.35 percent, lower than the previous week at 1,671.82, falling under
the 1,700-point level for the first time in two weeks.
The index has been on the decline as concerns about the strength of the global
economic recovery gripped the global markets throughout last week after a set of
economic data in China showed its manufacturing growth may slow down.
Analysts said that the local equity market will rebound as the stock prices have
gone down by a great deal in the short term and companies are expected to report
their second-quarter earnings results.
"The undervaluation of stocks, solid corporate performances and improved economic
health have prevented the local stock market from massive falls," said Lee
Seung-woo, an analyst at Daewoo Securities Co. "These factors will still weigh on
the stock bourse next week."
Other experts said the positive corporate earnings gains will not guarantee a
sharp rise in the stock market, as investors are expected to focus on the
economy, rather than on corporate profit, due to the gloomy overseas economic
figures in China and the U.S.
If the central bank's monthly monetary policy meeting next week seeks an exit
from stimulus measures, the market will remain under pressure, they said.
brk@yna.co.kr
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