Seoul stocks expected to face volatility next week (analysts)
A screen shows the Kospi chart in the trading room of Hana Bank in Myeong-dong, Seoul (Yonhap)
Korea’s benchmark stock price index closed at 3,019.18 points on Friday, down 3.4% from last week. The weekly loss came as U.S. political wrangling over raising the debt ceiling weakened investor sentiment.
The surge in Treasury yields in the world’s largest economy has also fueled concerns that the Federal Reserve may step up the pace of its cancellation of the stimulus to stabilize the inflation rate.
Analysts expected local stock transactions to face volatility in the coming week, largely as the Chinese government struggles to secure energy supplies amid power shortages.
Investors fear the move could hamper China’s growth this year.
“China’s recent power restriction in several regions is pushing up the cost of energy resources – that’s a risk to China’s fourth-quarter GDP,” said Kim Young-hwan, analyst at NH Investment & Securities .
On the positive side, “the profitability of (South Korean conglomerates) is expected to improve in the third quarter,” he added.
Next week, Samsung Electronics’ top KOSPI cap is expected to release its third quarter profit forecast.
Chinese stock exchanges will be closed Monday through Thursday for a public holiday. US employment data for September is expected to be released on Friday. (Yonhap)