The Korea Herald


Seoul shares forecast to take breather next week

By 배현정

Published : April 9, 2016 - 10:30

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South Korean shares are expected to remain in a tight range next week as investors take to the sidelines ahead of corporate earnings seasons at home and abroad, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,972.05 points on Friday, down 0.08 percent from a week ago.

KOSPI (Bloomberg) KOSPI (Bloomberg)

The country's stock market started higher this week as investor sentiment was boosted by gains in Wall Street, but caved in to institutional sell-offs, which was in part offset by foreign buying.

This week, foreign investors scooped up 370 billion won (US$321 million) worth of local stocks, while institutional investors sold over 1 trillion won.

"The local stock market may take a breather next week as investors digest a series of economic data abroad and corporate earnings," said Koh Seung-hee, an analyst at KDB Daewoo Securities Co.

But the analyst said the appetite for growth stocks will remain firm on the back of ample liquidity, which may help slightly jack up the KOSPI index.

China is set to release key economic data such as the first-quarter GDP figures, which are widely expected to have remained weak, according to the analyst.

The U.S. will roll out key data such as retail sales.

Medical equipment and pharmaceutical stocks were among the winners by rising 5.3 percent and 4.6 percent each, while banking and electronics stocks traded bearish this week by moving down 2 percent and 1.7 percent.