Seoul share prices to rise next week on subsiding Brexit effect: analysts
By 김지현Published : July 2, 2016 - 13:56
[THE INVESTOR] Korean shares are likely to trade higher next week as the impact of Britain's recent decision to quit the European Union is subsiding, analysts said on July 2.
The benchmark Korea Composite Stock Price Index has already gained 3.19 percent this week to end at 1,987.32 on July 1. That was after it suffered a 3.09 percent loss following Britain’s June 24 referendum.
Next week, analysts said the KOSPI will likely trade between 1,950 to 2,020 as central banks worldwide are poised to meet this month and come up with coordinated measures to address the global market volatility.
“The meetings are expected to prevent any sharp plunges, and investor sentiment looks likely to remain positive,” said Kim Ye-eun, an analyst at LIG Investment & Securities.
Early this week, the European Central Bank and the Bank of Japan said they would inject more liquidity into the markets. South Korea also announced a 20-trillion-won fiscal stimulus package to ease volatility and support growth.
Upcoming corporate earnings reports could be another catalyst for the markets, experts said. On July 7, Samsung Electronics is to report on its second quarter earnings. A market consensus expect the tech giant to report an operating profit of 7.3 trillion won on sales of 50.9 trillion won, both of which reflect an increase from the same period in 2015.
Investors will also be closely monitoring U.S. job data due out next week. Solid data would provide further support for the doves who believe the U.S. Federal Reserve won’t raise its key rate this year.
By Kim Ji-hyun (jemmie@heraldcorp.com)
The benchmark Korea Composite Stock Price Index has already gained 3.19 percent this week to end at 1,987.32 on July 1. That was after it suffered a 3.09 percent loss following Britain’s June 24 referendum.
Next week, analysts said the KOSPI will likely trade between 1,950 to 2,020 as central banks worldwide are poised to meet this month and come up with coordinated measures to address the global market volatility.
“The meetings are expected to prevent any sharp plunges, and investor sentiment looks likely to remain positive,” said Kim Ye-eun, an analyst at LIG Investment & Securities.
Early this week, the European Central Bank and the Bank of Japan said they would inject more liquidity into the markets. South Korea also announced a 20-trillion-won fiscal stimulus package to ease volatility and support growth.
Upcoming corporate earnings reports could be another catalyst for the markets, experts said. On July 7, Samsung Electronics is to report on its second quarter earnings. A market consensus expect the tech giant to report an operating profit of 7.3 trillion won on sales of 50.9 trillion won, both of which reflect an increase from the same period in 2015.
Investors will also be closely monitoring U.S. job data due out next week. Solid data would provide further support for the doves who believe the U.S. Federal Reserve won’t raise its key rate this year.
By Kim Ji-hyun (jemmie@heraldcorp.com)
