Seoul stocks likely to gain further next week

SEOUL, May 9 (Yonhap) -- South Korean shares are expected to extend gains next
week, led by sectors favorable to a strengthening local currency, analysts said
Saturday.

The nation's key stock index ended the week up 42.77 points or 3.12 percent from
the previous week, to reach a seven-month high of 1,412.13.
The rise came as the results of U.S. banking stress tests eased market jitters.
Solid purchases by foreign investors led the gains, as they continued their
net-buying of local shares for an eighth straight week.
A stabilizing South Korean won boosted investor confidence with the local unit
gaining nearly 8 percent over the last month. Compared with a 11-year low of
1570.3 won as of March 2, the currency rose around 20 percent against the U.S.
dollar.
"Amid no clear lead next week, the transportation sector and other importers are
likely to lead gains as improving currency levels are expected to benefit them,"
said Kim Joong-hyun, an analyst at Hyundai Securities.
"Exporters, however, may lose ground as investors are expected to lock in profits
from recent rallies," Kim said.
Airlines and shippers, sectors reliant on inbound oil shipments, and other
importers are predicted to gain benefits as a stronger won lowers their import
bills while the strengthened currency may weigh down exporters' overseas sales by
jacking up the prices of their products.
The Bank of Korea is scheduled to decide the policy interest rate on Tuesday. The
central bank is widely forecast to leave the rate unchanged at a record low of 2
percent as a series of economic indicators curbed their freefalls.
pbr@yna.co.kr
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