Investment concerns fill 2008
Economic slowdowns in America or China, high-flying oil prices and lower returns on stock investments will be among the external and internal factors concerning investors in 2008, according to local analysts yesterday.Min Sang-il, a strategist at Hanwha Securities, said additional signs of a recession in the American economy remain a major threat to the Korean stock market.
“If there is any downshift in the performance of American companies, the global economy and stock markets, still heavily dependent on the U.S. economy, will be affected considerably,” Min said.
Higher interest rates at local banks and lower performance by Korean stocks may reverse the flow of funds from bank deposits to the stock market, said Kim Joong-hyun, an analyst at Goodmorning Shinhan Securities.
Kwak Byung-ryel, a Daishin Securities analyst, said any slowdown in the Chinese economy, which boosted the Korean stock market last year, will also worry local investors.
“Though less than the double-digit growth last year, the Chinese economy is expected to enjoy around 9 percent growth this year, and it may raise inflation pressure further,” Kwak said.
The price of oil is also something to watch, said Lee Suk-jin, a Samsung Securities analyst.
“If oil prices stay at the current level, close to $100 per barrel, it will keep having a big impact on Korea,” Lee said.
By Moon Gwang-lip Staff Reporter [joe@joongang.co.kr]
with the Korea JoongAng Daily
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