Iresha Berera Seoul shares to hinge on Q1 earnings reports next week: analysts

SEOUL, April 11 (Yonhap) -- South Korean stocks, which enjoyed substantial gains this week, are expected to hinge on earnings results of global blue chips such as Citigroup Inc. next week amid the frozen U.S. financial sector showing signs of a thaw, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 4.07 percent last
week from the previous week to close at 1,336.04 Friday, reaching a new high for
the year.
Despite net selling by institutions, the key index managed to gain ground thanks
to retail and foreign investors picking up blue chips.
While some analysts predict that the KOSPI may be able to penetrate the
1,400-mark next week if first quarter earnings turn out better than market
expectations, others cautioned investors to maintain a conservative investment
strategy in the still uncertain market.
U.S. benchmark issues, such as Goldman Sachs Group Inc., the Coca-Cola Company
and Citigroup, are scheduled to report their first-quarter earnings results next
week, while several domestic firms, including flat-panel giant LG Display Co.,
are also scheduled to announce their results.
"There is consensus among investors that the worst has passed and that earnings
will improve down the road," Ji Ki-ho, an analyst at Dongbu Securities, said.
However, Kang Hyun-chul, an analyst at Woori Investment & Securities, offered a
more cautious view.
"Stock gains have been led by boosted market liquidity from low interest rates,
but a correction may follow any given time if earnings turn out to be weaker than
expected," Kang said.
odissy@yna.co.kr
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