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Seoul shares forecast to trade in narrow range next week

All News 10:00 February 11, 2017

SEOUL, Feb. 11 (Yonhap) -- South Korean shares are likely to remain in a tight range next week over volatile currency markets, with hopes expected to fade over U.S. President Donald Trump's policies, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2.075.08 points on Friday, up 0.09 percent from a week ago.

This week, Trump has said he would announce details of tax cuts for businesses in the next three weeks.

Some analysts said the pledge by Trump to cut taxes on businesses spurred a reversal in market sentiment that had been subdued by uncertainties over Trump's policies.

But, "excessive" hopes over Trump are likely to fade as time goes by, said Kim Byung-yeon, an analyst at NH Investment & Securities.

"With expectations and worries about Trump co-existing, it would be natural that excessive expectations would fall," Kim said.

Kim expected the main stock index to "trade at between 2,030 points and 2,070 points" next week.

A strong U.S. dollar and concerns about capital outflows are also expected to continue to weigh on the local equity market.

Investors are likely to keep a close eye on the country's employment data for January next week, some analysts said.

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