Kospi’s ups and downs expected
As expected by analysts who predicted a series of ups and downs, the Kospi headed up yesterday, regaining two-thirds of the previous day’s fall.The index advanced 44.17 points, or 2.3 percent, to 1947.98. On Monday, the index shed 66.29 points.
Other Asian markets, also affected by a tumble in U.S. stocks on Monday, experienced similar rebounds yesterday with Taiwan’s Taiex Index gaining 141.76 points, or 1.5 percent. China’s Shanghai SE Composite IX added 106.06 points, or 1.9 percent, while Japan’s Nikkei 225 gained 12.11 points, or 0.1 percent. Analysts said the bounce-back on the Kospi was helped by the performance of the U.S. stock market, which gained 44.95 points, or 0.3 percent on Monday.
However, they were split as to whether the 1,900-point mark was the bottom for the local market.
Kwak Byung-ryel, an analyst at Daishin Securities, said the market will stay above 1,900.
“We still need to watch, but the market will go up from 1,900 unless there is shockingly bad news at home and abroad,” he said.
Kwak said the recent strong performances by IT companies in the United States are expected to provide long-term momentum for the U.S. stock market, easing a bit of the global concern about the U.S. economy.
He also said concerns over oil price hikes are receding a bit as prices again went downward.
“We still can’t say concerns are completely gone, but what directly caused global market jitters has eased,” Kwak said.
Yoon Lee, an analyst with Woori Investment and Securities, sees it differently. “Foreigners keep selling and this is a time when investors could hyperreact to really small movement,” he said.
Park So-yeon, an analyst with Korea Investment and Securities, said despite her bright prospects over the long-term direction of the market, she sees it as very volatile.
“The extent of daily ups and downs shows that the market is volatile and could be that way for a while,” she said.
By Moon Gwang-lip Staff Writer [joe@joongang.co.kr]
with the Korea JoongAng Daily
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