KOSPI to fall short of earlier forecasts this year: analysts

SEOUL, Aug. 17 (Yonhap) – With South Korea's major stock index in a prolonged correction amid unfavorable global factors, the outlook for the remainder of this year is not as bright as previously predicted, analysts said Friday.

The benchmark KOSPI sank to a 15-month low on Thursday to close at 2,240.8 on massive foreign selling. The index is down 8.83 percent from the start of this year.

"The interest rate hike in the United States appears to have started affecting some vulnerable emerging nations in earnest, when it comes to their foreign exchanges and currencies," Yoo Seung-min, an analyst at Samsung Securities, said.

"Such wobbly global conditions have further deteriorated the sentiment of investors who have already been jittery over trade disputes between the United States and China," Yoo said, expecting the KOSPI to move between 2,150 and 2,580 points this year. Earlier, the brokerage firm projected the range of 2,300 to 2,800 for this year.

Korea Investment & Securities also adjusted down its forecast for KOSPI's upper end to 2,800 from its previous projection of 2,900, though its expert, Park So-yeon, said the market will gain upward momentum should the U.S. and China reach a compromise on trade.

As of 11 a.m. on Friday, the index rose 0.35 percent to rebound from the deep fall in the previous session, on news that the two global giants will resume trade talks later this month.

graceoh@yna.co.kr
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