South Korean stocks are expected to rise this week on economic stimulus efforts by governments, analysts here said.
The benchmark Korea Composite Stock Price Index closed at 1,986.81 this week, up 2.16 percent from 1,944.75 a week earlier.
The KOSPI moved in a tight range earlier this week as the Japanese currency continued to drop to over 100 yen against the U.S. dollar, but later advanced on hopes for strong economic stimulus efforts by governments and a belief that effects of the weakening Japanese yen have already been accounted for.
The analysts noted the KOSPI may breach the 2,000 mark next week, but that it will depend on whether foreign investors will continue to increase their commitment in the local market.
This week, foreign investors purchased a net 340 billion won $304 million worth of shares on the Seoul bourse with institutions snapping up a net 424.7 billion won. Retail investors offloaded a net 745.4 billion won worth of shares.
“Lately, foreign investors have been net buyers in Taiwan and their buying spree is expected to expand in South Korea, too,” said Han Chi-hwan, an analyst at KDB Securities Co.
The analysts said the information-technology sector was expected to spearhead the market growth this week.
“Considering the recent rise of the Philadelphia semiconductor index, a recovery of the country’s IT sector’s global market leadership can be well expected,” he said. (Yonhap News)
