South Korean securities firms have forecast the local stock market to fare better in 2020 on hopes of eased US-China trade tensions and other positive factors, sources said Nov. 7.
Nine brokerage houses have predicted the benchmark Kospi to reach an average of 2,177 points for next year, according to the sources.
The figure is up 3.66 percent from the Kospi’s average closing level of 2,100.29 points in the year to Wednesday, when the key index hit a five-month high of 2,144.15 points.
Most upbeat are Meritz Securities and Hyundai Motor Securities, which have offered a Kospi band of 2,000-2,500 for the coming year.
Kiwoom Securities has put forward the least optimistic forecast, saying the Kospi will likely move in a range between 1,900 and 2,250 next year.
Sanguine brokerages have cited rising expectations for a Sino-American trade deal, a recovery in South Korean corporate earnings and low interest rates both at home and abroad.
Hanwha Investment & Securities said investors may gravitate toward equity investment in the coming year as ultra-low interest rates both at home and abroad make dividends more attractive.
“The US economic growth rate is likely to reach 1.8 percent next year, a tad lower than this year, and the Chinese economy is predicted to slow to 5.7 percent, KTB Investment & Securities said.
Kiwoom Securities raised concern that the uncertainty surrounding the US-China trade spat may escalate in the second half of next year since the two sides seem to have chosen to resolve the issue temporarily through a “small deal,” rather than to seek a fundamental solution.
By Ram Garikipati and newswires (firstname.lastname@example.org)