hankyoreh

The South Korean stock market is expected to maintain its upward trend next week on the back of solid corporate earnings and firmer overseas markets, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) finished this week at 1,962.93, up 5.47 percent from the previous week.

South Korean stocks continued record-setting rallies with the key index surpassing the 1,900-point mark for the first time on Thursday. The index surged 2.78 percent on Friday to a record high on Samsung Electronics gains, setting to hit the 2,000-point level soon.

According to analysts, the local bourse is likely to retain its upward movement in the coming week on expectations of strong earnings amid ample liquidity.

"Although the index jumped too much in the short term, the market's rallies are likely to continue on rises in global equity markets and solid corporate bottom lines," said Kim Joo-hyung, an analyst at Tong Yang Investment Bank.

Next week, top steelmaker POSCO and leading chemical maker LG Chem plan to announce their second-quarter earnings.

But some analysts also said the market could face resistance to surpass the 2,000-point level on investors' profit taking.

They added investors need to focus on China's economic data to be released next week. China is expected to announce its second-quarter economic growth data and consumer price index, which analysts say could lead to a possible rate hike in China.
SEOUL, July 14 (Yonhap News)