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S. Korean shares forecast to remain rangebound next week

All Headlines 10:00 August 27, 2016

SEOUL, Aug. 27 (Yonhap) -- South Korean shares are expected to stay rangebound next week ahead of key economic indicators from major economies, including the United States and China, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,037.50 on Friday, down 18.74 points, or 0.9 percent, from the year's high of 2,056.24 a week earlier.

Renewed concerns over a possible U.S. rate hike continued to place downward pressure on the market throughout the week, while the local currency's advance against the U.S. greenback further encouraged foreign investors to dump risky shares.

The local currency closed at 1,113.70 won against the U.S. dollar on Friday, up 3.85 won from a week earlier.

Foreigners offloaded a net 466.88 billion won (US$419.2 million) this week as they turned to selling for three consecutive sessions from Wednesday. Institutions sold a net 260.72 billion won, while retail investors purchased a net 85.19 billion won.

"Investors remained cautious as they wait to see the outcome of the Jackson Hole meeting of the U.S. Federal Reserve," Korea Investment & Securities analyst Kim Dae-jun said.

The analyst said investors will continue to assume a wait-and-see mode ahead of key economic indicators, including the United States' employment rate, due later in the month.

"Investors will want to first see the outcome of major events, and because better-than-expected employment in the U.S. may again trigger concerns over a U.S. rate hike in September, they will likely continue to remain cautious for some time," he said.

"We will not see any sudden rises or declines in the KOSPI next week."

bdk@yna.co.kr
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