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Seoul shares set for skid on accelerating U.S.-China trade tensions

All News 10:00 May 09, 2020

SEOUL, May 9 (Yonhap) -- South Korean stocks are expected to trade slightly lower next week due to the renewed tensions between the United States and China amid the novel coronavirus pandemic, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,945.82 points on Friday, little changed from a week ago.

On Monday, the stock market lost ground after U.S. President Donald Trump indicated he may consider imposing new tariffs on China over its handling of the novel coronavirus outbreak.

Seoul shares set for skid on accelerating U.S.-China trade tensions - 1

The market, however, later advanced by more than 1 percent as investors bet on the reopening of businesses around the globe after coronavirus lockdowns.

On Friday, Seoul shares continued to gather ground as investor sentiment got a boost from less pessimistic economic indicators from the world's top two economies.

The local financial market was closed on Tuesday to mark Children's Day.

Foreigners offloaded a net 1.53 trillion won (US$1.25 billion) this week, while retail investors scooped up a net 1.7 trillion won. Institutions bought a net 266 billion won.

Next week, analysts said the market is expected to lose ground on rising tension between Washington and Beijing over trade.

"Concerns over further spread of the COVID-19 virus in the U.S. and Europe also linger as a threat, along with falling global oil prices," Kim Byung-yeon, an analyst at NH Investment & Securities Co., said.

Rising hope over the reopening of businesses around the globe, including in the U.S., however, may limit the decline, according to the analysts. New York is expected to gradually resume economic activities starting Friday next week.

This week, tech shares mostly lost ground, while pharmaceutical shares were among major winners.


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