Published : 2013-02-23 12:22
Updated : 2013-02-23 12:22
South Korean stocks are expected to trade higher next week on the back of rising hopes for the country's economy following the upcoming inauguration of President-elect Park Geun-hye, analysts said Saturday.
The benchmark Korea Composite Stock Price Index closed up 37.71 points, or 1.9 percent, to 2,018.89 on Friday from the previous week.
Earlier this week, the KOSPI moved up as the investor sentiment was heightened by a G20 meeting of finance ministers and central bankers, where officials raised concerns over the volatile foreign exchange market.
The main index hovered above the 2,000 mark for the first time since Jan. 14 on Wednesday on the back of positive economic data from the eurozone, while the United States President Barack Obama asserted the necessity of delaying sequestration.
However, the growth was limited on rising concerns that the U.S. Federal Reserve may scale back its economic stimulus sooner than expected.
Weekly foreign net-buying totaled 971.9 billion won ($896.5), while institutions scooped up 185.5 billion won worth of shares. Retail investors, in contrast, offloaded shares worth 1.06 trillion won.
Analysts said the KOSPI is expected to trade higher next week as investor sentiment is expected to rise amid expectations for relaxed business regulations under incoming President Park, who is set to take office on Monday.
"Local shares will trade higher due to the rising hope for the country's economy, with technology companies, industrial material manufacturers, financial firms and media businesses leading the gain," said Han Chi-hwan, an analyst at KDB Daewoo Securities Co.
Shares gathered ground across the board this week, with power firms advancing 4.66 percent, while banks and carmakers added 3.33 percent and 3.35 percent, respectively.
In contrast, steelmakers lost 0.82 percent, followed by retailers with 0.27 percent and logistics firms with 0.53 percent. (Yonhap News)