Seoul bourse to gain ground next week on eased uncertainties: analysts

SEOUL, Oct. 10 (Yonhap) -- South Korean stocks are likely to gain ground next
week on expectations for positive earnings reports and eased investor jitters
following the central bank's rate freeze, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) inched up 0.13 percent,
or 2.16 points, to close at 1,646.79 on Friday from a week ago, rebounding from a
plunge that brought the index below the 1,600 level in mid-week.
The market suffered setbacks earlier this week as investors worried about when
and how the world's major countries will begin to roll back expansionary policies
aimed at bolstering demand and investment.
The Australian central bank's rate hike this week sparked concerns over a
breakdown of global economic cooperation and led some market analysts to
speculate that Seoul might follow suit and increase borrowing costs.
On Friday, however, the Bank of Korea (BOK) kept its key interest rate unchanged
at a record low of 2 percent, saying that it is still too early to say the
economy is making a full recovery.
The BOK's assertion soothed fears among investors, who were puzzled by the
difference between the government and central bank over the nation's monetary
policy direction, analysts said.
Against this backdrop, corporate earnings to be released next week by global tech
and financial companies such as IBM, Morgan Stanley and Citigroup are also
expected to buoy market sentiment as their business are likely to be performing
better than the previous quarter, analysts noted.
Still, they cautioned that the impact might not be enough to prompt a rally, as
evidenced by Samsung's recently-unveiled better-than-expected third-quarter
guidance. which failed to widely buoy the market.
kokobj@yna.co.kr
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