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Seoul shares likely to further rise on vaccine, recovery hopes in coming week

Stocks 10:00 November 21, 2020

By Chung Joo-won

SEOUL, Nov. 21 (Yonhap) -- South Korean stocks are likely to further rise in the coming week on hopes for economic recovery and vaccines against the new coronavirus, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,553.5 points Friday, up 2.39 percent from a week ago.

The KOSPI refreshed its 33-month high during the past three sessions, thanks to the eased U.S. election uncertainties, vaccine hopes and corporate earnings rebound.

But the KOSPI has more room for gains, according to analysts.

"The KOSPI looks set for additional gains, as (the hike is) linked to positive changes in fundamentals," KTB Securities analyst Park Seok-hyun said.

He said the third wave of the COVID-19 pandemic is likely to have limited impact on the local market, considering the efficacy of the experimental COVID-19 vaccines and the governments' reluctance to adopt full-fledged economic lockdown policies.

But investors may be tempted to lock in recent gains, applying downward pressure, he noted.

Electronic signboards at a Hana Bank dealing room in Seoul show the benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,553.5 on Nov. 20, 2020, up 6.08 points, or 0.24 percent, from the previous session's close. (Yonhap)

Analysts predicted the local currency is likely to strengthen even further in the coming week, stoking further inflows of foreign capital into the market.

"Continued recovery momentum in exports seems to add to the appeal of local stocks for foreign investors," said NH Investment & Securities analyst Kwon Ah-min.

According to the data from the Korea Exchange (KRX), foreigners extended their buying streak to a 12th session Friday, raking in a net 5.38 trillion won (US$4.83 billion) on the main bourse in the Nov. 5-20 period. Individuals sold a net 4.14 trillion won, and institutions dumped a net 1.1 trillion won during the cited period.

South Korea's average daily exports gained 5.4 percent on-year in October, marking the fastest jump in 13 months, according to the Korea Customs Service data.

jwc@yna.co.kr
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