The benchmark KOSPI will continue its momentum for a rally and attain the 2,500-point mark this week on additional foreign capital inflow, which is being driven by hopes of the U.S. Fed slowing down its rate hike pace during its upcoming rate-setting meeting, analysts said.
Seoul stocks extended their winning streak to a fifth day Friday, as foreign and institutional investors scooped up major tech shares. The Korean won fell against the U.S. dollar.
The Korean stock market is feared to face an adjustment period on escalating fears of recession and conglomerates dismal earnings outlooks. The negative outlook came amid growing skepticism over major firms earnings growth on falling demand for Korea s major export items.
Korea s main benchmark, the KOSPI, is reversing last year s bearish performance, as it continues its upward trend since the start of the new year. According to the Korea Exchange (KRX), the KOSPI index rose by 6.69 percent during the first two weeks of January, putting it at eighth among the G20 countries main benchmark bourse operators for the same period. The main benchmark s increase rate this year has exceeded that of other major countries, including the U.S., Japan and China. Argentina s MERVAL index ranked first with an increase rate of 19.83 percent during the first two weeks of this year, followed by Mexico s IPC index at 10.55 percent. Euro markets also showed strong upward moves, with EURO STOXX5 50, Italy s FTSEMIB, France s CAC40 and Germany s DAX30 following down the list.