South Korea's stock market is likely to move in a narrow range next week as most local stocks have already priced in solid corporate earnings and other positive factors, analysts said on Friday. They said the market would take its direction from world oil prices, the won/dollar exchange rate and clues about the timing of any exit from monetary easing policies world-wide.
Over the week the benchmark KOSPI lost 0.19 points to close at 1,640.17 Friday. "The index is trapped in a boxed range," Choi Seong-Lak of SK Securities told Dow Jones Newswires.
"It looks hard for the index to break the upper end of the range after most local stocks have already priced in solid earnings and the economic recovery this year and some of the rosy outlook for next year," he said.
He ruled out a sharp pullback, saying corporate earnings and the global economy are undoubtedly recovering. Choi suggested investors remain on the sidelines until there are firm signs of a recovery in US consumer spending.
Kwak Joong-Bo of Hana Daetoo Securities told Yonhap news agency the KOSPI was likely to trade in a tight range as investors sort through third-quarter economic growth readings at home and abroad.