Seoul stocks likely to face volatility next week: analysts
SEOUL, South Korean stocks are likely to face volatility next week amid concerns about energy shortages in China, as well as lingering uncertainties over the bond yield rates in the United States, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 3,019.18 points Friday, down 3.4 percent from a week ago.
The weekly loss came as U.S. political wrangling about raising its debt ceiling weakened investor sentiment.
Spiking Treasury yields in the world's largest economy also fanned concerns that the Federal Reserve may hasten the pace of its stimulus rollback to stabilize the inflation rate.
Analysts expected that local stock trading could face volatility in the coming week, largely as the Chinese government is striving to secure energy supplies amid power shortages.
Investors are concerned that the move may hamper China's growth this year.
"The recent Chinese restriction of power supplies in multiple regions is driving up the cost of energy resources -- it is a risk for China's GDP in the fourth quarter," NH Investment & Securities analyst Kim Young-hwan said.
On the bright side, "the profitability of (South Korean conglomerates) is likely to turn out better in the third quarter," he added.
Next week, KOSPI top cap Samsung Electronics is widely expected to publish its third-quarter earnings guidance.
Chinese stock markets will be closed Monday to Thursday for a national holiday.
The U.S. job data for September is set to be released Friday.
Source: Yonhap News Agency