Seoul stocks likely to rebound next week on earnings surprise

Seoul (South Korea), April 25: South Korean stocks are likely to move upward next week on hope for an earnings surprise as more firms may deliver estimate-beating quarterly earnings.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 3,186.1 points on Friday, slipping 0.39 percent from a week before.
Individuals bought a net 3.3 trillion won (US$3 billion) while institutions sold 1.8 trillion won on the main local bourse this week. Foreigners sold 1.6 trillion won, largely influenced by a tax hike proposal in the United States that drove down U.S. stock indexes, as well as a surge in new coronavirus cases in India and Japan.
The key stock index closed at a fresh record high of 3,220.7 points on Tuesday.
The index took a breather Wednesday on increased valuation pressure but has rebounded since, helped by expectations of more companies with higher earnings reports.
Local analysts said the KOSPI has more room for gains in the coming week.
"The KOSPI is likely to break away from a tight trading range and pull higher on recovering exports, sound first-quarter earnings and growing momentum for green energy initiatives around the world," said NH Investment & Securities analyst Kim Young-hwan.
On the downside, a delay in the supply of COVID-19 vaccines may peg the KOSPI's uptick momentum, analysts said.
South Korea's daily new coronavirus cases reached almost 800 on Friday.
Source: Yonhap