Seoul shares to stay static next week

SEOUL, Nov. 1 (Yonhap) -- South Korean stocks are likely to move in a narrow box next week as downbeat corporate earnings and economic uncertainty in eurozone countries weigh heavily on the market amid a lack of momentum, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,964.43 on Friday, up 38.74 points from 1,925.69 the previous week.

Seoul shares started a tad higher on Monday as positive results of a stress test on eurozone banks boosted the index.

But it lost ground the next day as investors sat on the sidelines ahead of the U.S. Federal Reserve's policymaking meeting, gleaning for signs on when the Fed would raise the key rate.

The KOSPI hit a three-week high on Wednesday on upbeat economic data in the world's largest economy, but turned bearish as the U.S. central bank hinted at an early rate hike.

In the next week, the KOSPI will find no big issues to give it a pickup as investors are still worried about the slowing eurozone economy and sluggish corporate earnings, analysts said.

"Uncertainties stemming from the U.S. quantitative easing were removed, but concerns about an economic slowdown in Europe and poor performance of local companies will likely drag down investor sentiment," said Noh Aram, an analyst from KDB Daewoo Securities Co.

She said the U.S. mid-term election will also be an issue to watch for next week.

The local market will be highly influenced if the Republicans, who are disapproving of the Fed's monetary policy, win the Senate.

The European Central Bank is considering taking stimulus measures, including an asset purchase, in a meeting next week, but the range and impact of the policy will be not enough to shrug off the concerns widespread in the market, the analyst said.

brk@yna.co.kr
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