Seoul shares likely to move in tight range next week amid virus resurgence

Oct 24, 2020

Seoul (South Korea), Oct 24: South Korean shares are likely to move in a tight range in the coming week, as hopes for the new coronavirus vaccine development and concerns over the virus' resurgence are expected to pull the local financial markets in two opposite directions.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,360.81 points on Friday, up 0.82 percent from a week ago.
In the coming weeks, local stocks are likely to receive an upward push from reports related to the new coronavirus vaccine developments and a new stimulus push in the United States, analysts said.
But such events may be offset by resurgence in the COVID-19 outbreaks in the United States and Europe, analysts said.
"The U.S.-Europe virus resurgence and the U.S. election are likely to keep the key stock index in a tight range," NH Investment & Securities analyst Kim Young-hwan said.
More companies are set to report their earnings for the third quarter, with general consensus pointing at quarterly improvement.
"In Korea, only about 20 companies have reported their third-quarter earnings as of yet," eBest Investment & Securities analyst Yeom Dong-chan said.
"Of them, about 55 percent reported estimate-beating earnings, which seems promising so far," he added.
Source: Yonhap