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Seoul shares likely to trade in tight range on earnings concerns

South Korean shares are likely to trade in a tight range next week as investors digest a series of corporate earnings reports from major firms, analysts said Saturday.

The benchmark Korea Composite Stock Price Index closed at 2,216.15 points on Friday, down 0.77 percent from a week earlier.


Earlier this week, the main bourse extended its winning streak to 13 trading sessions but lost ground as investors opted to cash in recent gains.

On Thursday, the KOSPI plunged more than 1 percent after the Bank of Korea trimmed its growth projection for the year while freezing its key rate at the current 1.75 percent for April.

The main bourse slightly rebounded on Friday on the back of upbeat data from the United States.

Next week, investors will pay keen attention to earnings reports from SK hynix and other market heavyweights, according to analysts.

“Investors may attempt to lock in recent gains, and the concerns over earnings will also weigh down on the index,” Kim Byong-yeon, a researcher at NH Investment & Securities Co., said.

But the market may be buttressed as investors‘ concerns over a global economic slowdown have eased, Kim added.

Foreigners bought a net 216 billion won ($189 million), while institutions offloaded a net 368 billion won. Individuals scooped up a net 212 billion won.

Pharmaceuticals and carmakers were among gainers this week, while technologies, chemicals and steelmakers lost ground. (Yonhap)