Seoul stocks tipped to gain next week on stimulus hopes

By Chung Joo-won

SEOUL, Jan. 16 (Yonhap) -- South Korean stocks are likely to advance next week on strong foreign buying over U.S. stimulus hopes, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 3,085.9 points Friday, down 2.1 percent from a week ago.

Foreign and institutional investors sold a combined 2.17 trillion won (US$1.9 billion) worth of stocks, weighing down the bourse.

Still, analysts expected that South Korea's exporter heavyweights would gain in the coming week on hopes of global recovery and COVID-19 vaccinations.

"With the Biden administration set to launch Wednesday, the local stock markets will focus on how (the U.S.) relief package plan goes," NH Investment & Securities analyst Noh Dong-kil said.

But the recent hike in global stock multiples may bring a phase of adjustment at home due to high valuation pressure, he added.

Experts dismissed investors' concerns that the spreading optimism for global recovery may hasten the rate hike by central banks in spring.

"A rate hike in spring seems unlikely, considering comments from the Fed's policymakers, including Esther George and Loretta Mester," KTB Securities analyst Park Seok-hyun said.

Last week, George said the Fed would not react even if inflation tipped over 2 percent.

jwc@yna.co.kr
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