Published : Dec. 28, 2019 - 10:35
South Korean stocks are predicted to stay mostly flat next week as investors are expected to sit on the sidelines amid the possibility of a provocation by North Korea, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,204.21 points on Friday, little changed from the previous week.
Earlier in the week, the market closed lower as investors took a breather and cashed in recent gains after the market hit an almost eight-month high on Friday, buoyed by progress in the Sino-American trade negotiations.
After two sessions of profit taking, the market later bounced back on growing optimism over the deal, with U.S. President Donald Trump saying that the two sides will soon hold a signing ceremony.
On Friday, major tech shares were bullish in Seoul after the tech-heavy Nasdaq finished above the 9,000-point threshold for the first time since the market opened in 1971.
Foreigners sold a net 191 billion won (US$164 million) worth of local stocks this week. Institutions bought a net 796 billion won.
Next week, analysts said investors could take a wait-and-see stance on the relationship between the United States and North Korea, after Pyongyang remained silent following its threat to deliver what it called a "Christmas gift."
"Although Christmas passed without any significant event, it is still possible for North Korea to make provocations in early 2020," Kim Byung-yeon, an analyst at NH Investment & Securities Co., said.
"But investors should also remember that a sharp decline in share prices on North Korean risks is also an opportunity to hunt for bargains," Kim added.
This week, technology and pharmaceutical firms were among the major winners, while financial shares lost ground. (Yonhap)