Seoul stocks are expected to wait for the US price gauge next week
SEOUL, Aug 07 (Yonhap) – South Korean stocks are expected to face volatility next week as investors stay away from the next consumer price gauge for July.
Korea’s benchmark stock price index (KOSPI) closed at 3,270.36 points on Friday, down 2.12% from last week.
KOSPI gained in the first three sessions this week, driven by strong advances in large tech large caps. Record July exports and optimism about solid earnings in the second half of the year helped boost investor confidence.
The key stock index has slipped over the past two sessions amid the continued spread of the novel coronavirus. China’s crackdown on its tech and real estate markets has also weighed on stock prices.
Foreigners bought 55 billion won ($ 48.1 million) from the main exchange this week, while institutions sold 234 billion won. Individuals bought 192 billion won.
Analysts expected KOSPI to be influenced by the US Consumer Price Index, which is expected to be released next Wednesday (Korea time).
Experts have reached a consensus that a sharp rise in the US price gauge should slow in July. In June, the US consumer price index jumped 5.4% largely due to soaring used car prices, above the market consensus of 4.9%.
“Investor concerns about rapid price increases are expected to subside, along with the stabilization of used car prices,” said Park Seok-hyun, analyst at KTB Securities.
“If the pressure on prices eases in the second half of the year, it will be difficult for the Fed to accelerate the timetable for reducing its accommodative policies,” he said.