Seoul stocks to follow US eurozone developments
Korean stocks are expected to be influenced by U.S. economic developments and election results in European countries next week, local analysts said Saturday.
The country's key stock index, the KOSPI, closed at 1,989.15 on Friday, a gain of 0.70 percent or 13.80 points from a week earlier, mainly due to upbeat U.S. manufacturing sector data and predictions that the Chinese economy is showing signs of improvement.
Despite such gains, the bourse fell on Thursday and Friday on weaker than expected U.S. job market conditions and the decision by the European Central Bank not to outline specific policy measures to ease fiscal difficulties of some of its member countries.
The KOSPI tends to follow developments on Wall Street and U.S. economic and corporate data.
Local market analysts said the likelihood of France picking its first left-leaning president in 17 years and Greece's parliamentary election results could cause the market to give up more ground, although there is a chance investor sentiment will recover during next week's trading sessions.
"Even if the market slides to the 1,950 range, stocks of electronics companies and autos should act to stiffen further downward momentum," said Lee Seung-woo, an analyst at Daewoo Securities.
He added that depending on Chinese economic data, shares in chemicals and machinery may move up along with food and beverages that are affected by domestic demand.
Others said that because there is little likelihood of major global economic developments taking place this month, any upward or downward movement in the local stock market will be limited, with the KOSPI expected to move within a small margin. (Yonhap)