Electronic signboards at a Hana Bank dealing room in Seoul show the benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,968.8 on Nov. 12, 2021, up 43.88 points or 1.5 percent from the previous session’s close. (Yonhap)
SEOUL, Nov. 13 (Korea Bizwire) — South Korea’s benchmark stock index is likely to come under selling pressure next week as uncertainties from the fast-growing inflation continue to fan expectations of a quick rate hike by the U.S. Federal Reserve, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,968.8 points Friday, nearly unchanged from 2,969.27 points a week ago.
But volatility was high in individual sessions this week, largely as inflation indicators marked a fast pace in major economies, including the United States, Europe and China.
Analysts expected investors would keep a close eye on the economic indicators that may affect the central banks’ key interest rate.
“The local stock markets are facing risks from the high global price pressure and the individual selling spree to reduce the year-end tax burden,” said NH Investment & Securities analyst Kim Young-hwan.
“But these two risks are expected to ease down the road — the tax reduction move is a once-in-a-year event, and the supply bottleneck, the main cause of the inflation pressure, is likely to be gradually settled,” he added.
China’s October retail sales and jobs data are set to be released Monday.
U.S. third-quarter gross domestic product and October retail sales are to be released Tuesday.
The last batch of third-quarter corporate earnings reports are due next week.
South Korean conglomerate CJ, leading distiller HiteJinro and food behemoths Nongshim and Ottogi are to post their earnings reports Monday, the legal deadline for the corporate earning disclosure here.
(Yonhap)
