Seoul stocks expected to gain this week

South Korean stocks are expected to rise marginally this week as investors will be heartened by eased uncertainties at home and abroad, analysts said Saturday.

The benchmark Korea Composite Stock Price Index finished at 1,956.55 on Friday, down 0.14 percent, or 2.89 points, from a week earlier. The KOSPI bounced back from eight days of losses as retail and institutional investors hunted for bargains on Thursday.

The market is expected to extend its two-session winning streak next week as uncertainties at home and abroad will be eased, and it will revive institutional and foreign investors’ appetite for local shares, analysts said.

“European Central Bank head’s remarks made the bank’s monetary policy stance clear, and local earning seasons are nearing to closing. In addition, the Ukraine crisis also eased. These factors will be a positive catalyst to boost the local market this week, heartening foreign investors to buy local shares,” said Eric Lee, an analyst at Daishin Securities Co.

Nearly 70 percent of listed firms reported their first-quarter earnings this week, and tension in Ukraine seemed to have defused after Russian President Vladimir Putin said Wednesday the referendum being staged by pro-Russia separatists in parts of eastern Ukraine should be postponed.

European Central Bank President Mario Draghi hinted Thursday that the bank may reduce interest rate or take other stimulus measures in June to tackle the too-low inflation that hampers Europe’s economic recovery.

Kim Ji-hyung of Hanyang Securities Co. said the KOSPI is expected to hover in the range between 1,940 and 1,970 this week.

“Next week will see some Chinese economic data like April industrial output. The data are expected to be somewhat good, so it will reassure foreign investors about the Chinese economy,” Kim said.

“If foreign investors turn to net buyers, the market will get a boost from their buying,” Kim added. (Yonhap)