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Seoul shares to rest on Q4 earnings, Trump's policy next week

All News 10:00 January 21, 2017

SEOUL, Jan. 21 (Yonhap) -- South Korean stocks will likely remain in a relatively tight range next week, digesting the fourth-quarter earnings of local firms and new U.S. President Donald Trump's economic blueprint, analysts here said Saturday.

They predicted the benchmark Korea Composite Stock Price Index (KOSPI) will stay between 2,050 points and 2,010 points.

On Friday, the KOSPI closed at 2,065.61 points, mildly down from 2,076.79 a week earlier, on foreign selling.

Foreigners sold a net 168.8 billion won worth of shares, while institutions and individuals net bought 119.9 billion won and 18.9 billion won worth of stocks, respectively.

Market behemoth Samsung Electronics evaded an immediate leadership crisis, as a Seoul court rejected an arrest warrant sought for its de facto leader Lee Jae-yong on bribery, embezzlement and perjury charges.

In the coming week, major South Korean companies are expected to report decent fourth-quarter earnings, according to Kim Yong-koo, an analyst at Hana Financial Investment & Securities.

Other possible positive factors include a recovery in the global macro-economy and the expected return of foreigners, he added.

"However, there will be a cautious mood amid 'hyper uncertainty' from the launch of the Trump administration," Kim said.

Kim Byung-yeon, an analyst at NH Investment & Securities, also said there's a combination of positive and negative elements ahead.

"Momentum from China's Lunar New Year's holiday (from Jan. 27-Feb. 2) is forecast to weaken," unlike in past years due to Beijing's economic retaliation against Seoul for its decision to allow the U.S. to deploy a THAAD missile defense unit in the nation, he added.

South Korea's stock market will be closed on Friday for the Lunar New Year's holiday.

lcd@yna.co.kr
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