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

SEOUL, June 6 (Yonhap) -- South Korean shares are expected to trade in a tight range next week amid uncertainties from the upcoming FOMC meeting and escalating unrest in the United States.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,181.87 points Friday, up 7.5 percent from a week ago.

The stock index extended gains to a six straight session on Friday amid hopes of economic recovery. The Korean government proposed a 35.3 trillion-won (US$29.2 billion) extra budget to revive the economy amid the fallout of the new coronavirus pandemic.

The gains were also attributed to eased tensions between the U.S. and China over developments in Hong Kong.

Next week, the stock index may come under selling pressure after a week-long climb as investors are tempted to lock in recent gains. Investors will have to digest a series of key events, analysts said.

But the overall upward trend may be maintained despite uncertainties as economic reopenings around the globe fuel recovery hopes.

The memorial and funeral of George Floyd is set to be held in June 8-9 (New York time). The death of the African-American man triggered a massive anti-racism protests in the U.S.

The U.S. Federal Open Market Committee is widely expected to keep the interest rate at near zero at its scheduled meeting for June 9-10 (New York time).

jwc@yna.co.kr
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