Seoul shares forecast to rally next week
SEOUL, Aug. 29 (Yonhap) -- South Korean stocks are expected to move higher next week as jitters over China's growth abate and anticipation for a delay in the U.S. Federal Reserve's rate hike builds up, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 3.3 percent this week to close at 1,937.67 on Friday, snapping a five-weak losing streak.
The main index got off on a weak note earlier this week, dropping 2.47 percent on Monday on persistent concerns over the world's second-largest economy.
Beijing's surprise rate cut and stronger-than-expected GDP growth in the United States, however, calmed investors, sending the KOSPI higher for four consecutive sessions.
On the political front, a dramatic agreement to defuse a military standoff between Seoul and Pyongyang helped allay concerns over volatility on the South Korean financial market.
Analysts said the Seoul bourse will likely stay stable throughout next week on China's accommodative policy stance and hopes that the U.S. will postpone its expected rate hike.
"The KOSPI is likely to continue to rally as core risks ease. But it is unlikely for the index to break the 2,000-mark as the country's trade remains sluggish," said Ko Seung-hee, an analyst at Daewoo Securities.
Analysts cautioned investors to keep tabs on China's manufacturing data and U.S. employment data, which are both due next week.
By sector, stocks of companies that are less sensitive to uncertainties, such as telecommunications and banks, were recommended.
mil@yna.co.kr
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