Korean stocks are expected to remain in a tight range, though they may see upward movement on eased woes from Europe, local analysts said Saturday.

The benchmark Korea Composite Stock Price Index  closed at 1,963.10 on Friday, down 1.2 percent from a week earlier.


The index took off on an upbeat note at the start of the week after recovering from a near crash sparked by Britain's vote to leave the European Union in the previous week.

Profit-taking behaviors later faced downward pressure, prompting a 1.85-percent plunge on Wednesday.

Institutions have remained net sellers for the past eight consecutive sessions, offloading a net 910.66 billion won (US$785.19 million) worth of local shares this week alone.

Foreigners were also net sellers, shedding 54.68 billion won, while individual investors purchased a net 715.02 billion won.

The analysts said investor sentiment will likely remain weak next week as they await the outcome of monetary policy meetings of central banks in major economies, including the Bank of Korea on Thursday and the European Central Bank the week after next.

"The KOSPI will likely defend the 1,950-point level next week as problems originating from Europe have been stitched up, at least temporarily, and will likely remain at a lower level than the one seen immediately following the Brexit vote," Bookook Securities analyst Kim Sung-hwan said.

"With the BOK's monetary policy meeting next week, the index may move upward as long as no additional problems come from Europe," he said, adding the South Korean central bank was widely expected to hold its key rate steady, reaffirming its easing stance.

The BOK slashed its policy rate to a record low of 1.25 percent in June.

On Friday, the local currency closed at 1,161.80 won against the U.S. dollar, down 16.8 won from a week earlier. (Yonhap)