South Korea's stock market is forecast to be influenced by U.S. market movements next week since no major economic reports are scheduled to be released here during the period, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) finished at 1,427.68 this week, up 14.54 points from a week earlier, making a short-term surge before going flat later in the week.
Despite the market's slow recovery from its steep losses in January because of lukewarm earnings reports, the lack of investments in the market is preventing a full recovery, according to analysts.
"The market seems to be exposed to high volatility since January, especially on foreign exchange and earnings factors," said Kim Jung-hyun, an analyst at Tongyang Investment & Securities.
With no scheduled announcements of economic indicators ahead of the Lunar New Year holiday next weekend, the domestic market will be influenced by the announcement of U.S. economic indexes during the week, analysts said.
A string of reports are slated to be announced next week in the U.S., including December trade account figures on Tuesday and a February housing market index on Thursday.
"It is hard (for the main index) to continue an upward momentum at the current level," said Kim Joong-hyun, an analyst at Goodmorning Shinhan Securities, recommending investors to maintain a protective stance.
Seoul, Feb. 10 (Yonhap News)
Seoul bourse to be influenced by U.S. economic reports |
