[THE INVESTOR] Korea Investment & Securities predicted that the benchmark KOSPI would trade within a range of 1,870 points to 2,000 points in the aftermath of the Brexit crisis.

“There are two scenarios here, one is that the uncertainties surrounding Britain and Europe will spill over into emerging markets, meaning the local stock markets will continue to fluctuate,” said Noh Geun-hwan, an analyst with the brokerage.

“Only 1.4 percent of the South Korean bond market is composed of British funds, but they make up about 8.4 percent of the local stock markets.” 

In the second scenario, Noh said if the political uncertainties are eased sooner than expected, bolstered by the European Central Bank’s policies to inject more liquidity into the markets and continue on its path of low interest rates, the impact on emerging markets and Korea would be limited.

“The situation is a bit different form the 2008 financial crisis or the 2011 European fiscal crisis. Major risk indices are mostly steady,” Noh added.

Rounding up all the different factors, Noh said the KOSPI is likely to fluctuate between 1,870 points and 2,000 points.

IT, autos, petrochemicals and chemicals are some of the stocks that Hyundai Securities said may remain sustainable investment destinations throughout the upcoming crisis.

By Kim Ji-hyun (jemmie@heraldcorp.com)