[THE INVESTOR] There may be no major rebound in South Korean shares next week as investors are still cautious over a complete resolution of trade tensions between the United States and China, analysts said on Nov. 3.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 71.54 points, or 3.53 percent, to close at 2,096.00 on Nov. 2. The main index rebounded after shedding 14 percent in the past month amid fears that an escalated trade war between the U.S. and China could turn worse to batter global growth.
The rebound came on hopes of a possible breakthrough in the months-long trade dispute between the world‘s two biggest economies. “Just had a long and very good conversation with President Xi Jinping of China. We talked about many subjects, with a heavy emphasis on Trade,” Trump wrote in a tweet.
“The KOSPI will move in a tight range, without any meaningful rebound, next week because investors recognize that the U.S.-China trade talks may not yield any tangible results,” Noh Dong-kil, an analyst at Shinhan Investment Corp., said.
The brokerage expected the main index to move between 1,900 and 2,150 this month amid uncertainties surrounding the trade dispute between Beijing and Washington and the lack of upside momentum in the markets.
In October, foreigner investors sold a total of 2.821 trillion won worth of local stocks. Institutions and individuals underpinned the KOSPI index by purchasing a combined 2.221 trillion won stocks.
“If the U.S.-China trade talks are ’moving along nicely‘ as Trump tweeted, the KOSPI may this month regain at least 200 of the points it lost due to uncertainties and lack of momentum last month,” Noh said.
By Park Ga-young and newswires (email@example.com)