South Korean shares are expected to rise in the coming weeks, helped by a US rate cut and abundant liquidity at home, dealers said on Friday. "Share prices are expected to rise when the market re-opens next week after a three-day Thanksgiving holiday," Dongbu Securities analyst Lim Dong-Min said.
"The market, which is now abundant with liquidity, will maintain its upward trend for a while," he said, adding possible negative factors would be US economic data in late October and a drop in British real estate prices. For the week to September 21, the KOSPI index gained 49.24 points, or 2.6 percent, to 1,919.26. The market gained nearly four percent after the US Federal Reserve's rate cut Tuesday.
SK Securities analyst Kim Young-Jun said that the market may benefit from earnings expectations but also window-dressing by institutions as they get ready to close their books at the end of September.
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