SEOUL, South Korean stocks are likely to trade in a tight range next week, as global recovery hope is balanced against concerns about the new coronavirus variants.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at a fresh high of 3,302.84 points on Friday, up 1.07 percent from a week ago.
The KOSPI surpassed the 3,300-point level for the first time in its history.
The local stock market’s advance is in sync with the global rally that stemmed from optimism about a global economic rebound, the U.S. Federal Reserve chief’s reiteration that the steep inflation rate would eventually wane, and a massive bipartisan infrastructure deal in the United States.
A steep rebound in South Korean exports also boosted local investors’ appetite for risky assets.
“Corporate earnings outlook is improving on robust exports, which got a boost from the economic rebound in advanced markets,” NH Investment & Securities analyst Kim Young-hwan noted.
Despite the overall optimism for a better economy, the spreading new COVID-19 cases may peg the KOSPI’s gain, analysts said.
The South Korean government will ease its social distancing measures, starting July 1, though there are lingering concerns over the steady rise in new infections and potential spread of coronavirus variants.
Under the new four-tier system, restaurants and cafes in the capital area will be permitted to operate until midnight under Level 2, an extension from the current restrictions of 10 p.m.
Source: Yonhap News Agency