The Korean stock market is expected to attempt to grab fresh upward momentum based on strong U.S. economic data this week, but high oil prices could limit its rally, analysts said.
The KOSPI closed down 0.5 percent at 2,034.44 points on Friday, but eked out a weekly gain of 0.8 percent. For the year, the main bourse rose 11.4 percent, helped by a broader rally in recent sessions together with other Asian markets.
The tech-packed KOSDAQ closed up 0.27 percent at 539.78 points on Friday.
Analysts said February housing data from the U.S. would offer a guide to investors on the Korean market this week. Some of the data, especially concerning sales and housing market index, are expected to stage a recovery.
As long as U.S. housing data turns out to be within the expected range, the stock market will not move out of the current trend, analyst said.
But high oil prices are posing a threat to the broader economy and the strengthening of the U.S. dollar might put a spin on the market direction, they said.
“Investors will be focused on oil prices and the greenback’s movement on the foreign exchange market for a while,” said Lee Seung-woo, an analyst at Daewoo Securities.
IT shares have led the latest rally, which in turn could push fund managers and investors to consolidate their gains.
By Yang Sung-jin (
insight@heraldcorp.com)
