South Korean stocks are expected to gain ground late this week after moving sideways early in the week before the central banks of South Korea and Japan hold their respective rate-setting meetings, analysts said.
The benchmark Korea Composite Stock Price Index closed on Friday at 1,923.85, down 3.85 percent from 2,001.05 a week ago.
Analysts said that if the Bank of Korea confirms its policy to boost up the ailing economy at its June rate-setting meeting slated for Thursday, the KOSPI will bottom out and gain ground later in the week.
“Foreign investors may scoop up shares if the Bank of Korea decides to take measures to stimulate the economy,” said Kwak Byeong-ryeol, an analyst at Eugene Investment & Securities Co. “The KOSPI will face technical rebound this week.”
Han Chi-hwan, another analyst at KDB Daewoo Securities Co. said that if investors assure the expansionary monetary policy by the U.S. continues, the global stock market including the Seoul bourse will bounce back this week.“
Investors keep tabs on the comments of James Bullard, 12th president of the Federal Reserve Bank of St. Louis, who supports the massive bond-buying program. He is scheduled to make a speech on the program on Monday. (Yonhap News)
