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Seoul stocks set for mild gain next week: analysts

(Yonhap)
(Yonhap)

South Korean stocks are expected to log mild gains next week on hopes for a US stimulus package in the pipeline, analysts said Saturday.

The benchmark Korea Composite Stock Price Index closed at 2,200.44 points on Friday, nearly unchanged from 2201.19 points a week ago.

The index managed to stay above the psychologically important 2,200-point mark despite disappointing economic indices and Sino-American tensions.

Local analysts said the KOSPI is likely to post a gradual hike next week, largely on hopes for a massive US stimulus package under review.

"The local stock markets will be largely affected by stimulus measures, such as the extra US stimulus package," NH Investment & Securities analyst Noh Dong-kil said.

The US relief plan, if approved, is expected to improve consumer sentiment and fuel anticipation for a quick economic rebound, he added.

Improving demand in China is another positive actor for the KOSPI's gain next week, analysts said.

China's gross domestic product in the second quarter grew 3.2 percent on-year, sharply rebounding from a 6.8 percent on-year contraction in the first quarter.

The US GDP for the second quarter is set to be released on Thursday, Korea time. (Yonhap)
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