Seoul stocks likely to wait on U.S. price gauge next week

By Chung Joo-won

SEOUL, Aug. 7 (Yonhap) -- South Korean stocks are likely to face volatility next week as investors take to the sidelines over upcoming consumer price gauge for July.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 3,270.36 points Friday, down 2.12 percent from a week ago.

The KOSPI gained in the first three sessions this week, led by strong advances by tech large caps. Record July exports and optimism over sound earnings in the second half helped boost investor sentiment.

The key stock index slipped in the last two sessions amid continued spreading of the new coronavirus. China's clampdown on its tech and property markets also weighed on stock prices.

Foreigners net bought 55 billion won (US$48.1 million) at the main bourse this week, while institutions sold 234 billion won. Individuals purchased 192 billion won.

Analysts expected that the KOSPI would be swayed by the U.S. consumer price index, set to be released next Wednesday (Korea time).

Experts pulled a consensus that a steep rise in the U.S. price gauge is likely to slow in July. In June, the U.S. consumer price index jumped 5.4 percent largely due to the surging prices of used cars, higher than the 4.9 percent market consensus.

"Investor worries about the fast price hikes are expected to subside, along with the stabilizing price of used cars," KTB Securities analyst Park Seok-hyun said.

"If the price pressure eases in the second half, it would make it difficult for the Fed to hasten the timeline for tapering its accommodative policies," he said.

jwc@yna.co.kr
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