Seoul stocks likely to fluctuate next week amid China, virus uncertainties

SEOUL, South Korean stocks are likely to face volatility next week due to the uncertainties from China's market regulation and the resurgence of the new coronavirus, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 3,202.32 points Friday, down 1.6 percent from a week ago.

The KOSPI started off the week with losses, tracking a tech plunge in Hong Kong following China's clampdown on its big tech, education and property markets.

The stock index advanced for the next three sessions to Thursday, backed by estimate-beating corporate earnings that partially offset the China concerns.

Stocks fell back again Friday amid strong foreign and institutional sell-offs. The losses were attributed to the China risk, as well as the July 31 deadline (U.S. time) for U.S. negotiations in Congress on its debt limit.

Experts said the lingering Chinese regulation jitters will continue to influence local stock prices in the coming week as well.

"The lingering Chinese regulation issue seems to be agitating foreign investors and pulling their cash from the emerging financial markets," KB Securities analyst Ha In-hwan said.

Analysts also said investors are worried that the economy may peak soon, analysts said.

"Stocks are likely to fluctuate throughout the week, considering the resurgence in the local new coronavirus cases and the concerns that the economy may wane after the third quarter," NH Investment & Securities analyst Kim Young-hwan said.

South Korea's daily new coronavirus cases increased to more than 1,700 Friday, despite health authorities' efforts to contain the spread of the virus in the summer vacation season.

Source: Yonhap News Agency

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