South Korea's stock market is expected to remain volatile next week, with its direction likely to be determined by an emergency G7 meeting this weekend, analysts said on Friday. Over the week up to Friday the KOSPI index lost 12.5 percent or 178.18 points to close at 1,241.47.
Finance ministers and central bank chiefs from the Group of Seven industrialised nations will meet in Washington later Friday as stock markets around the world plunge in the worst banking crisis, since the Great Depression.
Analysts said local investors are closely watching how other stock markets will react to the meeting. "Markets seem to be moving toward destructive mode," pressuring policymakers to come up with more effective measures, Kim Hak-Kyoon, an analyst at Korea Investment and Securities, told Dow Jones Newswires.
"Although the dollar ended sharply lower against the won today, signs for a stabilised foreign exchange rate should be also confirmed for the normalisation of the local stock market," said Suh Dong-Pill, an analyst at Hana Daetoo Securities. He predicted near-term support at 1,200 points.
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