Seoul shares likely to see modest gains ahead of ECB meeting

SEOUL, Nov. 29 (Yonhap) -- South Korean stocks are likely to trade slightly higher next week on the back of the upcoming meeting of the European Central Bank (ECB), during which policy makers are likely to reaffirm their stance on fueling eurozone growth, analysts said Saturday.

Seoul shares started relatively strong earlier in the week on news of China's surprise rate cut, the first such move since 2012, which brought up hopes of a boost in demand for South Korean chemical firms and oil refiners.

Although the stock market's earlier gains pared slightly down later in the week, it maintained a stable pace during the week on the strength of favorable economic data from the United States and the eurozone.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,980.78 on Friday, up 0.8 percent from a week ago, with news of Samsung Electronics' stock buyback program buoying share prices for the market's No. 1 firm in terms of market cap. The tech giant's shares ended at 1,287,000 won (US$1,162.6) this week, up 5.23 percent from a week earlier.

Weekly foreign net buying came to 901.2 billion won, while individual investors sold a net 998.29 billion won. Institutions scooped up a net 82.85 billion won.

For the upcoming week, analysts forecast the benchmark KOSPI will stage limited gains, moving in the range of 1,940 to 2,000 points.

"The monetary meeting of the ECB will be a key event for market watchers next week," said Noh Aram, an analyst at KDB Daewoo Securities Co.

ECB head Mario Draghi had earlier said the Bank may widen its asset-buying program to stimulate growth in the eurozone and further stabilize the economy.

However, analysts say the Dec. 4 meeting is unlikely to bring about any spikes in the local bourse, as many "expect the ECB to simply reiterate its willingness to fuel economic growth," rather than come up with any game-changing plans.

Tech firms, transportation companies and medical device makers fared well this week, while machinery, construction and shipping shares lost ground.

yjkim8826@yna.co.kr
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