Seoul stocks likely to maintain upward momentum next week on vaccination, recovery hope

By Chung Joo-won

SEOUL, June 5 (Yonhap) -- South Korean stocks are likely to extend gains next week on sustained recovery hope and the accelerating inoculation drive here.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 3,240.08 points Friday, up 1.61 percent from a week ago.

Stocks advanced this week as improved economic data at home and abroad further enhanced hopes for a quicker-than-expected recovery.

In May, South Korea's exports jumped 45.6 percent on-year to extend their gains to a seventh consecutive month, and China's Caixin Manufacturing Purchasing Managers' Index hit a yearly high of 52.8. The U.S. ADP jobs data showed the steepest job increase in the cited month.

"Expectation for strong chip demand was the key reason for the foreigners' return (to net buying) this week," NH Investment & Securities analyst Yang Ji-yoon said. "The country's accelerating COVID-19 inoculation drive is also raising hope for a return to the pre-pandemic norms," she noted.

Health authorities said Friday that the country is expected to achieve its goal of inoculating over 13 million people, or a quarter of the total population, within this month, earlier than expected, given a smooth supply of vaccines.

Meanwhile, analysts said the tussle between economic optimism and inflation concern would continue to play out in the local markets. Volatility may rise ahead of the upcoming FOMC meeting set for next week, they said.

jwc@yna.co.kr
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