Seoul stocks set to move in tight range next week: analysts

SEOUL, March 7 (Yonhap) -- South Korean shares are expected to move in a tight range next week amid worries over the spread of the new coronavirus and expectations of global policy coordination to fight the economic fallout from the virus, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,040.22 points on Friday, up 2.6 percent this week.

Analysts said a key factor that could affect the South Korean stock markets next week is whether the spread of the coronavirus slows down.

In South Korea, COVID-19 has killed 42 people, mostly elderly patients with underlying illnesses, and infected more than 6,200 others. The virus is blamed for the deaths of 12 people in the United States, with about 100 confirmed cases.

Kim Byung-yeon, an analyst at NH Investment & Securities Co., said an expected slowdown in the pace of newly confirmed cases in South Korea and policy coordination in major countries could boost investor sentiment next week.

Kim said the number of newly confirmed cases here could fall as virus tests on potential cases are on the decline.

Earlier this week, the U.S. Federal Reserve slashed interest rates by half a percentage point in an apparent move to mitigate the economic fallout from the coronavirus outbreak.

Canada and Australia also slashed their key rates.

SK Securities Co. said the policy coordination had a positive impact on stock markets, adding that the European Central Bank and the Bank of Japan could also cut rates in coming weeks.

Kim Yong-ku, an analyst at Hana Financial Group, forecast the main index to trade at between 2,050 and 2,100 points next week.

entropy@yna.co.kr
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