ID :
73370
Sat, 08/01/2009 - 20:18
Auther :
Shortlink :
https://www.oananews.org//node/73370
The shortlink copeid
S. Korean stocks to keep moving upward, with weaker momentum
SEOUL, Aug. 1 (Yonhap) -- South Korean stocks are expected to keep moving upward
next week, but the market's momentum will be weaker than in recent rallies
because of profit-taking, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed this week at
1,557.29, up 54.5 points or 3.62 percent from the previous week. It continued its
advance for a sixth straight week, with the index surpassing the 1,550 mark for
the first time in 11 months.
"Thanks to large-scale purchasing by foreign investors, most large-cap issues
extended gains, leading the overall market rally," said Kim Jung-hyun, an analyst
at Goodmorning Shinhan Securities. "Given the recent steep gains, however, buying
shares next week just on the upbeat market mood is not advisable."
The rally was mostly attributed to stock purchase by foreign investors who were
bolstered by improving economic conditions and brisk earnings results by market
heavyweights.
Investor sentiment will likely remain upbeat as economic conditions seem to be
rebounding after a long free fall in the wake of the financial crisis that
started last summer.
Favorable economic signals are being seen at home and abroad, setting an
optimistic tone for South Korean stocks next week.
On Friday, South Korea said that its industrial output declined 1.2 percent in
June from a year earlier, a large improvement over the 9 percent contraction
recorded in May. On-month, output jumped 5.7 percent.
The government said the economy is on a "solid path to a recovery."
The United States, one of South Korea's largest export markets, also seems to be
climbing out of the worst recession in decades. The nation's gross domestic
product fell at a 1.0 percent annual rate in the second quarter, slowing from a
6.4 percent tumble in the first three months of this year.
The local market's upward momentum, however, will likely not be as strong as in
recent weeks as earnings factors have mostly been reflected, analysts said.
Heavyweights such as Samsung Electronics and Hyundai Motor have already unveiled
their second-quarter performance reports.
Investors might also move to lock in profits after recent steep advances, further
dragging on the market, they added.
kokobj@yna.co.kr
(END)
next week, but the market's momentum will be weaker than in recent rallies
because of profit-taking, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed this week at
1,557.29, up 54.5 points or 3.62 percent from the previous week. It continued its
advance for a sixth straight week, with the index surpassing the 1,550 mark for
the first time in 11 months.
"Thanks to large-scale purchasing by foreign investors, most large-cap issues
extended gains, leading the overall market rally," said Kim Jung-hyun, an analyst
at Goodmorning Shinhan Securities. "Given the recent steep gains, however, buying
shares next week just on the upbeat market mood is not advisable."
The rally was mostly attributed to stock purchase by foreign investors who were
bolstered by improving economic conditions and brisk earnings results by market
heavyweights.
Investor sentiment will likely remain upbeat as economic conditions seem to be
rebounding after a long free fall in the wake of the financial crisis that
started last summer.
Favorable economic signals are being seen at home and abroad, setting an
optimistic tone for South Korean stocks next week.
On Friday, South Korea said that its industrial output declined 1.2 percent in
June from a year earlier, a large improvement over the 9 percent contraction
recorded in May. On-month, output jumped 5.7 percent.
The government said the economy is on a "solid path to a recovery."
The United States, one of South Korea's largest export markets, also seems to be
climbing out of the worst recession in decades. The nation's gross domestic
product fell at a 1.0 percent annual rate in the second quarter, slowing from a
6.4 percent tumble in the first three months of this year.
The local market's upward momentum, however, will likely not be as strong as in
recent weeks as earnings factors have mostly been reflected, analysts said.
Heavyweights such as Samsung Electronics and Hyundai Motor have already unveiled
their second-quarter performance reports.
Investors might also move to lock in profits after recent steep advances, further
dragging on the market, they added.
kokobj@yna.co.kr
(END)
