South Korean stocks are expected to be bullish this week on hopes of improved first-quarter corporate earnings, analysts said Saturday.
The benchmark Korea Composite Stock Price Index finished at 2,004.28 on Friday, up 0.34 percent, or 6.84 points, from a week earlier. The KOSPI broke the 2,000-mark for the first time in five sessions since April 10 when it hit 2,008.61.
The bullish market stemmed from optimistic forecasts for the first-quarter earnings results slated to be out from this week.
Analysts predicted that the market will extend Friday’s rally to next week.
“The KOSPI is forecast to move about in the range of between 2,020 and 2,050 next week, when key companies such as Hyundai Motor plan to release their earnings reports,” said Eric Lee, an analyst at Daishin Securities.
Kim Hyoung-ryoul, an analyst at Kyobo Securities, agreed with Lee’s view, saying, “The market is expected to see an additional rise next week, as the recent strength of the won will have little impact on local companies’ profits.”
Kim said the local firms had already braced for the won’s fluctuation against the greenback, weakening the impact from the won-dollar exchange.
The won’s rise against the dollar usually makes South Korean products more expensive on the global market, hurting exporters’ dollar earnings.
The South Korean won rose to an average of 1,062.10 won on the dollar in the October-December period of last year, up 4.5 percent from the previous three months. But its rise was slightly reduced in the first quarter of this year, hitting an average of 1,069.10 won, down 0.7 percent from the previous quarter. (Yonhap)