South Korea - Pundits forecast KOSPI to hit 2,300 mark in 2017: ARIRANG NEWS

ARIRANG NEWS

Published on 28 Dec 2016

내년 코스피 박스권 탈출하나...2,300까지 전망
Market pundits believe Korea's benchmark KOSPI may finally break out of its seven-year-long box pattern... and reach the two-thousand-300 mark next year. 

They believe a stronger global economy will help the country achieve that goal...but, lingering uncertainties are likely to hinder the process. 

Ro Aram has more.
The biggest impact on the local bourse is what happens in the United States.
With Donald Trump vowing to spend about one trillion U.S. dollars on infrastructure during his time in the White House, along with other measures, there are forecasts of a two percent rise in the economy.
These factors have already helped the Dow Jones industrial average close in on the psychologically important 20-thousand mark. 

Elsewhere, China has already been expanding fiscal spending since last year in a bid to fuel its economy.
Other developed countries have also shifted from trying to stimulate their economies with low interest rates to expanding public spending.

This has brought more optimistic views that the global economy will get out of a long-term slump and kick off a positive growth pattern.

It has also spurred local securities firms to predict that Korea's benchmark KOSPI may hit the 2,300 mark in 2017. 

The bottom figures were forecast at a minimum of 1,860 due to possible interest rate hikes, mounting household debt and other market uncertainties. 

The average forecast was between 1,910 and 2,272 - up 20 to 40 points from the year before and the rate of fluctuation was at an average of 373.


"In 2017, we'll see an uptrend in exports for the first time in three years. Both the amount and prices will rise in tandem, creating an export boom."


However, there are still factors that could eat away at the rosy outlooks. 

If Trump sticks to his pledge to declare China a currency manipulator, it could have a negative impact on Korea's exports. 

Also, the on-going power-abuse scandal that is rocking the country could also hinder growth.
Although nothing is for certain now... more concrete answers will s