Seoul stocks to be in tight range next week; data, stimulus packages in focus

Aug 01, 2020

Business
Seoul stocks to be in tight range next week; data, stimulus packages in focus

Seoul (South Korea), Aug 1: South Korean stocks are expected to move in a tight range next week, as investors remain watchful over the U.S. stimulus package under way, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,249.37 points on Friday, up 2.22 percent from 2,200.44 points a week ago.
The index increased in the first four sessions of the week, due to massive foreign buying of market heavyweights and better-than-expected earnings by Samsung Electronics and other large-cap companies.
Local analysts mostly expected the KOSPI to stay above the psychologically important 2,200-point level in the coming week.
Massive U.S. stimulus package and progress related to COVID-19 vaccine development may boost the local stock market.
"The market consensus is that the U.S. stimulus package will get done," said Kim Young-hwan, a NH Investment & Securities analyst.
The resurgence of the new coronavirus infections at home and overseas remain a risk factor, analysts said.
Among a set of events for next week, brokerage experts pinned hopes for improvement in China's purchasing managers index (PMI) and the U.S. Institute for Supply and Management (ISM) manufacturing index, both to be announced Monday.
"A possible increase in China's PMI and U.S. ISM manufacturing in July may boost the local stock market and set a better environment for exporters," KTB Investment & Securities analyst Park Seok-hyun said.
South Korea's exports fell 7 percent on-year in July, but their pace of decline sharply slowed on the back of economic reopenings.
Source: Yonhap News Agency