A local securities firm forecasts the benchmark Korea Composite Stock Price Index(KOSPI) could possibly surge above three thousand next year.
KB Securities said Tuesday the KOSPI could rise to three-thousand-60 points in 2018. The company said the current economic situation is very similar to the booming year of 1986 and predicted the generally bullish trend in the stock market will continue next year.
KB also said that next year will be marked by a weak dollar and strong Chinese yuan that can spur global funds into emerging markets. It also cited weak global oil prices which will be more favorable to emerging manufacturing economies rather than developing countries rich in natural resources.
In a separate report, the securities firm also forecast the tech-heavy KOSDAQ could reach the one-thousand mark next year.
An analyst at KB cited government support for start-up ventures and pension funds' plan to expand investment in the secondary bourse as reasons for this projection.