Tough week anticipated for stock markets
Korean stocks are likely to suffer increased volatility next week, as investors will focus more on the developments in the novel coronavirus pandemic despite stimulus measures around the globe, analysts said.The benchmark Kospi closed at 1,717.73 points Friday, sharply up 17.84 percent from a week ago.
The index experienced an extended market rout last week, with bourse trading halted Monday and Tuesday.
The Kospi suffered a 5.34 percent plunge to start the week, but advanced 8.6 percent Tuesday, its largest daily percentage increase since Oct. 30, 2008, and extended gains with a 5.89 percent rise Wednesday after major economies vowed stimulus packages to tackle the economic fallout from the Covid-19 crisis.
The index snapped its two-day recovery Thursday with a 1.09 percent drop, but bounced back again with a 1.89 percent gain the following day.
Analysts said the Kospi will test the 1,750-point level next week, but its direction will ultimately depend on novel coronavirus infections globally.
“Financial markets appear to have digested coronavirus stimulus measures,” Kim Byeong-yeon, an analyst at NH Investment & Securities, said. “Investors will focus on effectiveness of stimulus measures and whether the Covid-19 crisis is improving.”
Yonhap
with the Korea JoongAng Daily
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