Seoul bourse likely to rise further next week

SEOUL, July 25 (Yonhap) -- The South Korean stock market is expected to gain
momentum next week as solid corporate earnings and rising overseas equity markets
will likely lift sentiment, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed this week at
1,502.59, up 4.34 percent from the previous week and marking the highest level
since Aug. 21 last year.
The KOPSI passed the 1,500-point mark for the first time in about 10 months as
foreign investors continued to pick up Seoul stocks and companies reported solid
second-quarter earnings. Eased concerns over the possible bankruptcy of U.S.
lender CIT Group also added to upward momentum on the Seoul bourse.
Earnings results from market leader Samsung Electronics Co. and chip giant Hynix
Semiconductor were better than expected. Samsung Electronics posted a net profit
of 2.25 trillion won (US$1.8 billion), up 5.2 percent from a year earlier, buoyed
by brisk sales of mobile handsets and liquid crystal display (LCD) panels.
Analysts say once the KOSPI breaches the 1,500-point level following weeks-long
range-bound trading, there will be room for the index to gain further momentum.
But some were cautious, saying that investors may want to take a breather since
the KOSPI has sharply risen in a short period of time, and the peak of the
second-quarter earnings season has passed.
"Next week, the stock index may trade in a narrow range amid juggling between
hopes for further stock price gains and caution against the KOSPI's recent sharp
gain," said Lee Seung-woo, an analyst at Daewoo Securities Co.
sooyeon@yna.co.kr
(END)

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