Seoul stocks to be exposed to greater volatility

Seoul stocks to be exposed to greater volatility

Korean stocks will likely be exposed to greater volatility in the new week caused by disappointing U.S. and Chinese economic data and persevering eurozone woes, local analysts said Saturday. The country's key stock index, the KOSPI, closed at 1,835.51 points on Friday, up 10.34 percent from a week earlier helped by a technical rebound and bargain hunting for big caps that had fallen in May. Analysts said despite the gains this week, lingering external uncertainties remain that could weigh down the market in future trading sessions and are compounded by a lack of upward momentum in the local market and moves by investors to lock in short-term profits that limit any gains. They added there is a prevailing "wait-and-see" stance among investors on how political developments unfold in eurozone countries such as Greece and Spain. Greece is expected to hold an election in the middle of the month that should give a clearer indication of whether the country will stay in the European currency union. "The KOSPI will track news coming from the European Union and a few big cap stocks that exert influence on the market," said Lee Seung-woo, an analyst at Daewoo Securities. He added that, on the whole, the market will probably fluctuate between minor gains and losses without any clear trend. Another factor that could affect the market is speculation the United States may push for new stimulus programs to fuel growth and offset negative developments in its property market, employment conditions and industrial productivity. (Yonhap)