South Korean stocks may rebound this week if the Japanese yen’s weakening abates, analysts said.
The benchmark Korea Composite Stock Price Index closed at 1,950.9 on Friday, down 0.35 percent from a week earlier.
Despite positive economic data from the United States, the KOSPI got off to a weak start last week as the local currency continued to rise against the U.S. dollar amid a weakening yen.
Eurozone concerns as well as North Korea’s nuclear threats also dented investor sentiment, further weighing on the KOSPI.
The main stock index, however, recovered to the 1,950-level later in the week thanks to a technical rebound.
Foreign investors purchased a net 80 billion won ($73 million) worth of shares while retail investors scooped up a net 270 billion won worth of stocks. Institutions, however, offloaded shares worth 340 billion won.
The analysts said the local stock market may rebound next week if the Japanese yen recovers.
“If the yen’s weakening abates, it may mark the beginning of a market rebound,” said Lee Seung-woo, an analyst at KDB Daewoo Securities Co.
Positive trade data and the incoming government’s potential measures to boost the local economy may also lift investor sentiment, the analysts said. (Yonhap News)
