08/08/22 09:25:50 T4R6KS8k
Kospi Target Is Cut 15% by UBS on Economic Slowdown
By Kyung Bok Cho
Last Updated: August 21, 2008 02:11 EDT
URLﾘﾝｸ(www.bloomberg.com)
Aug. 21 (Bloomberg) -- South Korean stocks will rise less than forecast
as global economic growth slows, UBS AG said, paring its one-year forecast
for the Kospi index by 15 percent.
The index is unlikely to drop below 1,500 as that would take its price-earnings ratio
to a ``recession level'' of 10 times, the low point during the 1991 U.S. recession.
Furthermore, the National Pension Service of Korea may invest as much as 9 trillion won
($8.5 billion) in stocks in the second half of 2008 and is bound to buy
when equities fall, the analysts said.