The low earnings report from Samsung Electronics
in the third quarter has started a ripple
effect... that has local security firms downgrading
their forecasts for other firms.
They say the impact is likely to carry over
well into next year.
Kim Ji-yeon reports.
One by one, local securities firms are lowering
their projections for Korean shares next year,...
citing a lack of growth momentum in the domestic
economy.
Kyobo Securities Company points to a faster-than-expected
slump in exports as one of the main reasons...
citing an earnings shock from Samsung Electronics
in the third quarter of this year.
"There′s no growth engine to supplement
the low earnings performance of Samsung Electronics.
The country′s automobile sector isn′t
likely to improve anytime soon either due
to low global demand... and this will spill
over to Korean shares next year."
The analyst adds the shares may fluctuate
within a wide margin as the Korean economy
undergoes structural reforms.
Projections for this year′s main benchmark
KOSPI aren′t all that bright either... as
the gap between Korean shares and global shares
are widening.
The KOSPI fell nearly four percent from the
start of the year,... the steepest drop among
Asian countries.
In contrast, the Dow Jones reached an all-time-high,
rising nearly 5 percent over the same period...
while Japan′s Nikkei inched up 3-and-a-half
percent on the back of Tokyo′s expansionary
monetary policies.
Kim Ji-yeon, Arirang News.
