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Seoul shares forecast to remain in tight range next week

All News 10:00 June 11, 2016

SEOUL, June 11 (Yonhap) -- South Korean shares are expected to remain in a tight range next week as investors take to the sidelines ahead of key economic events, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,016.73 points on Friday, up 1.5 percent from a week ago.

The country's stock market started higher this week as weaker than expected job data from the U.S. reduced the chance of an imminent rate hike in the world's largest economy.

Previously, market expectations have run high that the U.S. Federal Reserve may raise the borrowing costs in the world's largest economy this month or next month.

This week, foreign investors scooped up local stocks worth 927 billion won (US$794 million), while individual investors sold over 1.42 trillion won.

"The market is expected to move in a tight range ahead of the Federal Open Market Committee (FOMC) meeting on June 15, although the chance of the much-expected rate hike diminished," said Kim Hyung-rae, an analyst at KDB Daewoo Securities Co.

The analyst said it is right to take a cautious approach ahead of major economic events such as the FOMC meeting.

Pharmaceutical stocks and steelmakers were among the winners by rising 7.1 percent and 5.1 percent, respectively, while mobile carriers traded bearish this week, moving down 3.4 percent.

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