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Seoul shares forecast to seesaw on global uncertainties

All News 10:00 January 30, 2016

SEOUL, Jan. 29 (Yonhap) -- South Korean stocks are expected to go volatile next week as investors will closely watch possible quantitative easing by major economies amid persistent concerns over a global economic slowdown, analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,912.06 on Friday, up 1.74 percent from a week ago after going through wobbly sessions.

The market finished higher earlier this week on hopes for a calming message from the U.S. Fed to alleviate jittery investors following the global market rout in the new year.

As the central bank of the world's largest economy rather flagged concerns and major firms issued weaker-than-expected fourth-quarter earnings, however, investors shunned risky assets, causing the index to plunge.

But the market made a turnaround to rise for three consecutive sessions on bargain hunting and the recovery in oil prices. The Bank of Japan also boosted investor sentiment by adopting negative interest rates on Friday.

"The move by the Japanese central bank would be positive as it raised hopes for major economies' similar steps of quantitative easing," said Ko Seung-hee, an analyst at Daewoo Securities.

"But lingering concerns over China's economic slowdown have still cast a shadow, and the market will fluctuate in a range of 1,850 to 1,930 accordingly," the researcher said, noting that foreign investors who went on a selling binge for more than a month from the end of last year would at least reduce the volume of its sell-off.

graceoh@yna.co.kr
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