Published : 2014-03-16 21:00
Updated : 2014-03-16 21:00
The nation’s stock market may face volatility this week depending on the geopolitical uncertainty surrounding the crisis in the Crimean Peninsula and the U.S. Fed’s scheduled policy meeting, analysts said.
The benchmark Korea Composite Stock Price Index finished at 1,919.9 Friday, down 2.5 percent from a week earlier.
The KOSPI came under selling pressure on concerns over a slowdown in the Chinese economy and continued tensions in Ukraine.
“The main index may face volatile sessions due to policy uncertainties,” said Lee Jung-min, an analyst at KDB Daewoo Securities. The analyst said the U.S. Fed would use its March 18-19 (Seoul time) policy-setting meeting to map out its plan for rate rises, expecting that it would try to soothe investors’ concerns over a faster-than-expected tapering of its bond-purchasing scheme.
Also, the result of a controversial referendum in Crimea on joining Russia will largely affect the local stock market, analysts said.
“Instability in Ukraine, coupled with credit risk in China, would also prod investors to take caution in buying shares,” said Lee.
“But optimism over a boosting measure by China may help offset such negative factors.”
Foreigners were net sellers of local equities this week with 950 billion won. Retail investors snapped up a net 1.19 trillion won, while institutions sold a net 220 billion won.
Construction firms and logistics companies were among the biggest losers last week, each losing 4.4 percent and 4.3 percent. In contrast, telecom companies and steelmakers gained 2.1 percent and 1.2 percent, respectively. (Yonhap)