Kospi headed for 3,000, analyst says
An asset management company in Korea said yesterday the nation’s benchmark stock market would reach the 3,000-point mark in three years.“Our conservative prediction is that the net profit of local companies will increase by 10 percent annually,” said Jo Se-hoon, director of the Shinhan BNP Paribas Investment Trust Management.
“If that is the case, the Kospi, reflecting those performances, will reach 3,000 points approximately three years from now.”
Regarding the U.S. subprime mortgage woes that have sent a shock through markets all over the world, Jo said they would only have short-term affects in Korea. The Kospi, which rose from 1,300 points early this year to 2,000 points in July, collapsed to 1,630 in August after being hit by the U.S. housing market crisis. The index was at 1,838.61 as of Tuesday.
“Certainly the current subprime mortgage crisis seems to be slowing down the U.S. market, but it won’t grow to the point that it will trigger the collapse of the global financial system. The influence of the U.S. economy is dwindling,” Jo said. “The Korean market will go through a moderate adjustment period.”
By Moon Gwang-lip Staff Writer [joe@joongang.co.kr]
with the Korea JoongAng Daily
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