ID :
27905
Sat, 11/01/2008 - 14:10
Auther :
Shortlink :
https://www.oananews.org//node/27905
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S. Korean stocks expected to gain ground next week
SEOUL, Nov. 1 (Yonhap) -- South Korean stocks are forecast to gain steam next week, thanks to hopes of trade surplus for October and a possible additional interest rate cut, analysts said Saturday.
However, the market will remain volatile due to fears over possible corporate
bankruptcies and an economic slump, they said.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 17.6 percent last
week from the previous week to close at 1,113.06 on Friday as foreign investors
snapped up blue chips in line with overnight U.S. gains.
The key index breached the 1,000-mark on Thursday after the Fed announced a
currency swap arrangement of up to US$30 billion each with South Korea, Mexico,
Brazil and Singapore to help ease dollar funding for major emerging economies
amid the global financial crisis.
The local market will be boosted by expectations for trade surplus for October
and a possible additional interest rate cut, analysts said.
"The stock market will highly likely to gain ground next week, brushing off
jitters over the local financial markets as the Bank of Korea indicated that it
may lower its key rate, and the local financial markets will be further
stabilized if trade balance for October records a surplus," said Lee Seung-woo,
an analyst at Daewoo Securities Co.
South Korea's trade balance for October is due out on Monday, while the Bank of
Korea is to hold a monthly monetary policy meeting to set the key rate on
Thursday.
The country's central bank slashed its key interest rate last Monday by 0.75
percentage point, its largest cut ever, in a bid to keep global financial turmoil
from sharply slowing the real economy.
Lingering concerns over local banks' financial health and possible corporate
bankruptcies will make the local market volatile, they added.
"Despite the eased credit crunch, the market remains jittery due to investors'
woes over local banks' financial health and possible corporate bankruptcies,"
said Kim Joong-hyun, an analyst at Goodmorning Shinhan Securities Co.
However, the market will remain volatile due to fears over possible corporate
bankruptcies and an economic slump, they said.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 17.6 percent last
week from the previous week to close at 1,113.06 on Friday as foreign investors
snapped up blue chips in line with overnight U.S. gains.
The key index breached the 1,000-mark on Thursday after the Fed announced a
currency swap arrangement of up to US$30 billion each with South Korea, Mexico,
Brazil and Singapore to help ease dollar funding for major emerging economies
amid the global financial crisis.
The local market will be boosted by expectations for trade surplus for October
and a possible additional interest rate cut, analysts said.
"The stock market will highly likely to gain ground next week, brushing off
jitters over the local financial markets as the Bank of Korea indicated that it
may lower its key rate, and the local financial markets will be further
stabilized if trade balance for October records a surplus," said Lee Seung-woo,
an analyst at Daewoo Securities Co.
South Korea's trade balance for October is due out on Monday, while the Bank of
Korea is to hold a monthly monetary policy meeting to set the key rate on
Thursday.
The country's central bank slashed its key interest rate last Monday by 0.75
percentage point, its largest cut ever, in a bid to keep global financial turmoil
from sharply slowing the real economy.
Lingering concerns over local banks' financial health and possible corporate
bankruptcies will make the local market volatile, they added.
"Despite the eased credit crunch, the market remains jittery due to investors'
woes over local banks' financial health and possible corporate bankruptcies,"
said Kim Joong-hyun, an analyst at Goodmorning Shinhan Securities Co.
