KOSPI To Remain Higher On Stocks Next Week

South Korean stocks are projected to continue to trade higher next week after the passing of a US relief package and the injection of ample liquidity for an event scheduled next week that is a big initial public offering, said analysts on Saturday.

The scale of the Korea Composite Stock Price Index (KOSPI), which is around 3,054.39 points, was set on Friday, 0.93 percent higher from a week ago.

In the last two sessions, Stocks had recovered to the 3,050- point plateau. It can be recalled that KOSPI's investors were previously turned risk-averse, concerned about a US Treasury yields hike which caused the stocks to retreat for around five sessions in a row until Wednesday.

The KOSPI had previously gone down to 2,950 -point level as the US currency strengthened compared to the local currency, where it remained on top for nearly four months due to the market anxiety caused by early post-pandemic inflation.

The increase could be a cue from global rallies stemmed from the passing of the American Rescue Plan, which amounts to US$1.9 trillion that was recently passed.

Analysts said that the US stimulus is a good sign that is favorable to the local exports such as memory chips and autos, and they expected KOSPI to remain choppy trading but in a broader band with a higher ceiling on the following week.

The meeting, which will be held next Tuesday and Wednesday by the US Federal Open Market Committee meeting raised the hopes to slow down the bond yields hike as it posed the biggest risk in the local markets.

South Korea's No. 2 family-controlled corporations, SK Group's bio unit, had set the largest sum in the trading history of the country as it recorded 64 trillion won ($56 billion) in investor deposits.

Vaccine maker SK bioscience Co.'s IPO is also expected to contribute to strengthening KOSPI.