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Seoul shares expected to move in tight range next week

South Korean stocks are expected to move in a relatively tight range as investors are set to digest the U.S. Federal Reserve‘s rate decision amid ongoing trade talks between Washington and Beijing, analysts here said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,186.95 points on Friday, up from 2,176.11 the previous week.

The KOSPI started on strong note on hopes for headway in trade talks between the United States and China.


The bourse, however, slipped for two sessions in a row as investors took to the sidelines amid concerns over the slow pace of talks and a U.S Fed meeting.

On Thursday, the KOSPI closed higher after a dovish statement by U.S. Federal Reserve. It ruled out interest rate increases this year, citing a gloomier growth outlook for the world’s No. 1 economy, and said it will also stop scaling back its bond portfolio in September.

Analysts are forecasting lower volatility in the new week as investors are set to take to the sidelines due to uncertainties both at home and abroad.

Kim Byung-yun, an analyst at NH Investment & Securities, said investors are most likely to maintain a wait-and-see stance in the midst of various developments.

Kim forecasts the main stock index to trade between 2,150 and 2,240 points in the coming week. (Yonhap)