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Trump-Kim summit, FOMC on investors' radars next week

All News 10:00 June 09, 2018

SEOUL, June 9 (Yonhap) -- Seoul shares are expected to show big moves depending on the results of a landmark summit between the United States and North Korea, while investors will await the Federal Reserve's rate decision, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,451.58 on Friday, up 0.51 percent from a week earlier.

The index rose three consecutive sessions this week on the back of foreign buying to extend gains from the previous week, but it closed lower on Friday, taking a breather from a rally.

Food, bank and telecommunications were among the biggest gainers, while bio, materials and tech stocks were bearish.

Shares related to North Korea are expected to fluctuate this week as U.S. President Donald Trump and North Korean leader Kim Jong-un will hold their historic summit in Singapore on June 12.

Investors will also pay keen attention to the rate decision by the Federal Reserve and statements from the two-day Federal Open Market Committee (FOMC) meeting that ends on June 13.

Trade concerns remain as the White House earlier said it will release a list of $50 billion of Chinese goods that will be subject to a 25 percent tariff on June 15.

"As there are big events next week, investors will make bets on the results of the US-North Korea summit and try to cash in from shares that get a boost from the mood of detente," Kim Byung-yeon, an analyst at NH Investment & Securities, said. "There's optimism in the market on hopes for the major political events that could have ripple effects across the shares."


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