ID :
93309
Sat, 12/05/2009 - 12:28
Auther :
Shortlink :
https://www.oananews.org//node/93309
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Seoul shares expected to rally next week on seasonal momentum
Seoul shares expected to rally next week on seasonal momentum
SEOUL, Dec. 5 (Yonhap) -- A rally in South Korean stocks may gain momentum next
week as investor sentiment is likely to be influenced by a so-called Santa Claus
rally, analysts said Saturday.
The analysts warned, however, that while share prices could rise, the gains may
be limited since the index is near the resistance level.
The benchmark Korea Composite Stock Price Index (KOSPI) finished at 1,624.76 this
week, up 100.26 points, or 6.68 percent, from a week earlier. It was the biggest
weekly jump on the Seoul bourse since March.
The KOSPI index recovered all the ground it lost in the previous week, shaking
off uncertainty triggered by a debt crisis in Dubai.
Foreign and institutional investors increased their holdings of local stocks over
the week on strong global cues.
Analysts added that Seoul shares will rally next week as the investor sentiment
was boosted after last week's strong gains. Recovery hopes for next year will
also prompt gains in the market, they said.
"The KOSPI index might enjoy a 'mini-rally' next week, as stock buying is picking
up momentum," said Ryu Yong-seok, an analyst at Hyundai Securities Co.
There are some factors in the market however which could cause a correction in
the short term, analysts said.
The Bank of Korea will hold a rate-setting meeting on Thursday. Many market
watchers expect the central bank will put off raising its key interest rate,
which stood at a record low of 2 percent for the ninth straight month in
November. The South Korean government has been saying it will continue to beef up
its crisis management scheme into next year.
Investors will also likely turn their attention to options that will expire next
week, which will serve as another factor that will affect market movements.
"We have to be open to the possibility that the market's resilience might not
continue," said Lee Seung-woo, an analyst at Daewoo Securities Co.
"Moves should be made after assessing the short-term direction of the market.
Investors should be cautious of hurrying into buying," Lee said.
ygkim@yna.co.kr
SEOUL, Dec. 5 (Yonhap) -- A rally in South Korean stocks may gain momentum next
week as investor sentiment is likely to be influenced by a so-called Santa Claus
rally, analysts said Saturday.
The analysts warned, however, that while share prices could rise, the gains may
be limited since the index is near the resistance level.
The benchmark Korea Composite Stock Price Index (KOSPI) finished at 1,624.76 this
week, up 100.26 points, or 6.68 percent, from a week earlier. It was the biggest
weekly jump on the Seoul bourse since March.
The KOSPI index recovered all the ground it lost in the previous week, shaking
off uncertainty triggered by a debt crisis in Dubai.
Foreign and institutional investors increased their holdings of local stocks over
the week on strong global cues.
Analysts added that Seoul shares will rally next week as the investor sentiment
was boosted after last week's strong gains. Recovery hopes for next year will
also prompt gains in the market, they said.
"The KOSPI index might enjoy a 'mini-rally' next week, as stock buying is picking
up momentum," said Ryu Yong-seok, an analyst at Hyundai Securities Co.
There are some factors in the market however which could cause a correction in
the short term, analysts said.
The Bank of Korea will hold a rate-setting meeting on Thursday. Many market
watchers expect the central bank will put off raising its key interest rate,
which stood at a record low of 2 percent for the ninth straight month in
November. The South Korean government has been saying it will continue to beef up
its crisis management scheme into next year.
Investors will also likely turn their attention to options that will expire next
week, which will serve as another factor that will affect market movements.
"We have to be open to the possibility that the market's resilience might not
continue," said Lee Seung-woo, an analyst at Daewoo Securities Co.
"Moves should be made after assessing the short-term direction of the market.
Investors should be cautious of hurrying into buying," Lee said.
ygkim@yna.co.kr
