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Seoul shares forecast to remain in tight range next week

All News 10:00 February 04, 2017

SEOUL, Feb. 4 (Yonhap) -- South Korean shares are expected to remain in a tight range next week amid concerns over U.S. President Donald Trump's policies, but sound economic data released this week will help shore up the local stock market, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,073.16 points on Friday, down from 2,083.56 points a week earlier.

This week, the local stock market was roiled by the Trump administration's policies, including a travel ban, but got a relief from the U.S. Fed's signal about a slower than expected rate hike in the future.

Also, corporate earnings at home and abroad helped boost market sentiment, but caved in to profit-taking by institutional investors here, they said.

"South Korea's outbound shipment remained relatively firm in January, and corporate earnings from key players were roughly in line with market expectations, which is positive to the market," said Jo Yon-ju, an analyst at NH Investment & Securities.

"But high-priced U.S. stocks, coupled with negative impact from the Trump administration's policies on emerging markets, may work to negatively affect (market sentiment)," the analyst said.

Analysts said investors are advised to pick up economic cycle-sensitive stocks as the local stock market is expected to be led by them in the future.

Also, sound corporate earnings will put a floor under the market down the road, they said.

Next week is also packed with a set of key economic data, including China's foreign exchange reserve for January.


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