Seoul stocks to track eurozone developments

By 조지현
  • Published : Apr 28, 2012 - 13:22
  • Updated : Apr 28, 2012 - 13:22

South Korean stocks are expected to track developments in eurozone countries and global and domestic economic data next week, local analysts said Saturday.

The country's key stock index, the KOSPI, closed at 1,975.35 on Friday, a dip of 0.1 percent from a week earlier, mainly due to North Korea's geopolitical risk, and persistent eurozone woes fueled by the downgrading of Spain's long-term credit rating by two notches. 

Concerns fiscal instability may spread to the Netherlands and France further affected the market, which could have received a boost from gains on Wall Street and goods earnings reports from such local companies as Samsung Electronics Co. and Hyundai Motor Co.

The KOSPI tends to follow developments on Wall Street and U.S. economic and corporate data.

Market strategists predicted that for next week, investors will wait for U.S. job reports, as well as South Korean industrial output and trade data.

In May, any upward or downward movement in the stock market will be limited, since there may not be enough momentum.

"The KOSPI will likely move within a small margin," said Lee Seung-woo, an analyst at Daewoo Securities.

He said the relatively weak showing this week could cause an upward movement of stocks, but they will be influenced by economic data and how the current problems facing European countries unfold.

(Yonhap News)