SEOUL, Feb. 5 (Korea Bizwire) — South Korean stocks are likely to take on an uptick momentum next week on a technical rebound from the recent stock plunge, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,750.26 points Friday, up 3.26 percent from 2,663.34 points a week ago. The South Korean stock market was closed Monday to Wednesday this week for the Lunar New Year holiday.
The key stock index gained for a third straight session Friday, rebounding from a weeklong slump that stemmed from concerns about the U.S. Federal Reserve’s hawkish signal.
But analysts said the local stock market has begun to rebound from last week’s stock plunge.
“The U.S. January employment and the consumer price index will be the two key volatility factors for next week, but they will not be able to put off the technical rebound of the stock prices,” Daeshin Securities analyst Moon Nam-joong said.
“The Federal Reserve’s (policy interest) rate hike in March is now a given consensus, (already projected in the stock prices),” he said.
In addition, investors also pinned high hopes that the upcoming TV debates by the presidential candidates may hint at potentially lucrative sectors for investment.
The first televised debate by the four presidential candidates was aired Thursday.
At least four more debates of the sort will take place, on Feb. 8, 21, 25 and March 2.
“Despite the lingering concerns about the global macroeconomic (policy moves), the presidential debates are expected to highlight which sectors would be able to benefit from the policy pledges,” NH Investment & Securities analyst Kim Young-hwan said.
In the coming week, China’s Caixin service purchasing managers index (PMI) will be released Monday.
The U.S. consumer price index is due Thursday.