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Seoul shares likely to trend upward next week

All News 10:00 April 01, 2017

SEOUL, April 1 (Yonhap) -- South Korean stocks are expected to move up albeit in a tight range next week, as the release of the first-quarter earnings preview by Samsung Electronics Co. and other key events will likely spur fresh momentum for the local bourse, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,160.23 on Friday, down 0.61 percent from the previous week. The failure to pass the health care bill by the Donald Trump administration earlier in the week added uncertainty to global markets over the new government's ability to push ahead its key economic agenda, including tax reform measures.

With a lack of fresh leads, lukewarm investor sentiment here locked the shares in range-bound sessions throughout the week, with cumulative foreign buying of local equities coming in at 111.2 billion won (US$99.4 million) as of Friday.

Institutions sold off a combined net 351.5 billion won, lending a hand to the KOSPI's tepid movement. Individual investors bought a net 6.4 billion won.

Next week, the local stock market will likely move upwards, as key events are scheduled to take place. South Korean tech giant Samsung Electronics is due to report its first-quarter earnings guidance on April 7, which is predicted to have improved after the ill-fated launch of the battery-problem-plagued Galaxy Note 7.

Investors are also expected to pay close attention to the U.S.-China summit on April 6-7, the first time that the two leaders of the economic powers are to meet and presumably exchange views on key economic and political agendas.

"Samsung's earnings report, the March export and the U.S.-China summit will be key factors that will affect the KOSPI's movement next week, which are likely to spur fresh momentum," said Kim Byung-yeon, an analyst at NH Investment & Securities Co.


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