Seoul shares likely to stay rangebound next week

SEOUL, Dec. 20 (Yonhap) -- South Korean stocks are likely to move in a narrow range next week but search for signs of small rebounds in time for year-end dividends, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) ended at 1,929.98 on Friday, up 0.4 percent from the previous week.

The KOSPI kicked off this week on a weak note following Japan's lower house election held on Sunday.

As expected, the coalition led by Prime Minister Shinzo Abe struck victory, raising views the result will further accelerate the yen's weakness and negatively impact local stocks.

The stock index posted losses throughout the week as continued worries over weakening oil prices and a brewing financial crisis in Russia sapped investor appetite for risky assets.

On Friday, however, the KOSPI surged 1.71 percent, buoyed by eased fear over external woes and a sharp rally in shares of Samsung Group's affiliates.

The conglomerate's de facto holding firm, Cheil Industries, which went public on Thursday, soared 14.6 percent on Friday after doubling its initial offering price in the previous session.

Analysts projected the KOSPI, which fell for four out of five trading days this week, is likely to remain rangebound next week while chances of small gains linger as foreigners wind down their net selling.

"Foreign net selling is likely to subside as investors shift their attention to year-end dividend shares," said Noh A-ram, an analyst at KDB Daewoo Securities.

Foreigners offloaded shares for an eighth straight session, driving down the KOSPI below the 1,900-resistance level on Thursday.

"While some U.S. data are expected next week, there won't be significant ingredients that will impact the KOSPI next week. However, there may be small rebounds following recent losses," said Woori Investment & Securities analyst Park Sung-hoon.

Analysts, however, said jitters over political instability in Greece are forecast to weigh down the index until early next year.

The Greek parliament's effort to elect a new president in the first of three rounds of voting was foiled on Dec. 17. The second and third rounds are scheduled for Dec. 23 and Dec. 29.

The local stock market will be closed for Christmas on Thursday.

mil@yna.co.kr
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