Seoul bourse likely to gain ground next week: analysts

SEOUL, Aug. 15 (Yonhap) -- The South Korean stock market is expected to gain
momentum next week as foreign investors will likely continue to pick up Seoul
shares amid rising hopes of economic recovery here, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed this week at
1,591.41, up 0.98 percent from the previous week and marking the highest level
this year.
Since the KOPSI passed the 1,500-point mark for the first time in about 10 months
in late July, its ascent has continued on the back of hopes for an economic
recovery and foreign buying.
Despite brighter economic outlooks presented by the U.S. Federal Reserve, the
Seoul bourse lost ground during the week as foreign investors turned into
net-sellers to end a 20-session buying streak on Wednesday. But the stock index
still managed to end the week at a yearly high as offshore investors returned to
the Seoul bourse.
Analysts said the Korean market is likely to continue its upward momentum in the
coming week with investors focusing their attention on whether the KOSPI will
breach the 1,600-point level.
Investor sentiment is expected to improve as a set of economic data at home and
abroad are lifting prospects for an economic recovery, thereby raising foreign
investors' appetite for riskier assets, they added.
"The Seoul bourse has the elements for a bull market, like strong buyers and
leads," said Kim Joo-hyung, a market analyst at Tong Yang Securities Co. "Tech,
auto and financial stocks are expected to lead the market run."
Some note, however, that the market's bull run might be limited as foreign
investors' buying momentum weakens amid sharp gains on the index.
"Overall market sentiment is still good for additional gains, but as foreigners'
buying spree is slowing down, the Seoul bourse is not likely to strongly rise
further," said Lee Seung-woo, an analyst at Daewoo Securities Co.
sooyeon@yna.co.kr
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