Seoul stocks tipped to rebound next week amid earnings hope
SEOUL-- South Korean stocks are likely to rebound next week, as optimism for strong corporate earnings is expected to buffer growing virus concerns, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 3,281.78 points on Friday, down 0.64 percent from a week ago. The KOSDAQ closed the week at a 52-week high for the second consecutive day at 1,038.18 points.
The country's virus situation is getting worse, with the daily caseload continuing to increase amid woes over spreading variant cases.
On Friday, South Korea added 826 new COVID-19 cases, the highest daily tally in nearly six months.
Prime Minister Kim Boo-kyum warned that the government may tighten its social distancing guidelines if necessary, citing the surge in new cases.
Analysts said virus worries will continue to affect stock prices next week.
But such negative impacts may be pared by expectations for robust corporate earnings in the April-June period, they said.
Tech large caps Samsung Electronics and LG Electronics are scheduled to report their quarterly earnings guidance next week.
"Strong exports and optimism for corporate earnings are positive factors," said NH Investment & Securities analyst Kim Young-hwan.
The potential surge in the COVID-19 outbreaks remains the biggest risk, but the market is more reactive to the death toll, rather than the actual number of new infections, he said.
South Korea's exports jumped 39.7 percent on-year in June, extending their gains to an eighth consecutive month on the back of a recovery in global business activities.
Source: Yonhap News Agency