Seoul shares likely to continue upward move in coming week

SEOUL, May 2 (Yonhap) -- South Korean shares are expected to extend their rallies
in the coming week on signs of an economic recovery and improving corporate
earnings, analysts said Saturday.

The country's key stock index, KOSPI, closed at 1,369.36 on Friday, up 15.26
points or 1.13 percent from a week earlier, despite concerns that a deadly flu
virus could spread quickly, possibly denting economic activities.
"The local stock market will continue upward moves this month on growing
speculation that the economy will improve down the road," said Kang Hyun-chul, an
analyst at Woori Investment & Securities. The analyst said the key index may
approach the 1,400 mark this week.
South Korea's industrial output continued a double-digit decline in March, but
showed signs of stabilizing as the pace of its downturn eased, raising hopes the
worst is nearing an end, a government report showed earlier this week.
Production in mining and manufacturing shrank 10.6 percent last month from a year
earlier, compared with a revised 10 percent on-year decline in February,
according to the report by the National Statistical Office (NSO).
Buoyed by ample liquidity coupled with better than expected economic data,
investors are likely to flock to the equity market, according to the analysts.
Meanwhile, the U.S. stock market closed higher on Friday on increased commodity
demand and improving consumer sentiment.
The blue-chip Dow Jones Industrial Average gained 0.54 per cent to close at
8,212.41, and the tech-heavy Nasdaq Composite Index rose 0.11 per cent to
1,719.2.
sam@yna.co.kr
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