BUSINESS

S. Korean shares to move in tight range next week

By Yonhap
  • Published : Aug 11, 2018 - 11:10
  • Updated : Aug 11, 2018 - 11:10
South Korean shares are expected to be locked in a narrow range next week as investors take to the sidelines amid global trade tension worries, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,282.79. points on Friday, slightly down from 2,287.68 points a week earlier.

The local stock market started mildly lower Monday as institutional and foreign buyers offloaded large-cap shares, mostly offsetting a massive selling spree by individuals.

Investors look at an electronic board showing stock information at a brokerage house in Shanghai, China, Thursday. (AP-Yonhap)

The index, however, turned around and closed higher for three sessions in a row as tech giant Samsung Electronics announced that it will invest 180 trillion won ($160 billion) over the next three years.

On Friday, the Seoul bourse again lost ground as foreign and institutional buyers offloaded holdings of large-cap tech shares amid a strong US dollar.

Next week, investors are likely to take a wait-and-see stance due to persistent worries over the trade war between the world's two largest economies and ahead of second-quarter earnings news from major firms.

"The KOSPI is forecast to move in the 2,250-2,330 range due to jitters surrounding a possible trade war and ahead of earnings reports for the second quarter," said Kim Byong-yeon, an analyst at NH Investment & Securities.

Analysts emphasized lingering worries over trade war tensions after Beijing announced on Wednesday that it would impose 25-percent tariffs on US goods starting August 23 in response to Washington's tariff move.

(Yonhap)

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