Korea's incoming president is expected to help push up the country's stock prices to record high levels, local market watchers, citing past trends, said Wednesday.

Analysts said the prediction is based on the recent rise in share prices fueled by generally good earnings reports by big name companies in the first quarter and forecasts that the global economy is on the mend.

They also said that the country's stock market has almost always moved up during the first two years of a new president's term in office.

Asia's fourth-largest economy will pick its new president next Tuesday, with the chief executive being sworn in on the following day.

The Korea Composite Stock Price Index (KOSPI) gained 14.23 points, or 0.65 percent, to close at 2,219.67 on Tuesday, the second-highest closing number ever posted by the main bourse. The all-time high was set at 2,228.96 on May 2, 2011.

The market is closed on Wednesday since Buddha's Birthday is a national holiday here.

Chi Ki-ho, head of research at Cape Investment and Securities Co., said that careful analysis of the past six presidents showed that the average earnings for stocks in their first and second years stood at 23-26 percent.

He said that while there are some differences in growth during a president's term in office, the main bourse usually went up at the end of the past six presidents' terms, with the exception of Kim Young-sam, who was the country's leader from 1993 through 1998.

The senior researcher said it is most likely that the market will top the record high mark and move in the 2,697 to 2,818 range in the coming months.

"This is in line with the 20 percent range spike reached for previous presidents early on after taking power," he said.

Other market watchers at Hana Financial Investment Co. said that from a global perspective local shares are considered "value stock" with good growth potential, so prices will invariably go up barring some unforeseen developments. (Yonhap)