Seoul shares likely to move in tight range next week

SEOUL, March 28 (Yonhap) -- South Korean stocks are expected to move in range-bound trading next week, as a dim outlook in key U.S. and Chinese data will likely cap the inflow of foreign capital, analysts have said.

The Korea Composite Stock Price Index (KOSPI) closed down 0.9 percent to 2,019.80 on Friday from a week earlier. The index continued the streak of choppy sessions for most of the week, as there was no fresh impetus to drive shares after uncertainties had eased on the U.S. Federal Reserve's dovish statement on monetary tightening.

The consistent inflow of foreign assets remained strong to prop up the main index, offsetting downside risks from some worse-than-expected U.S. data to be released later in the week that raised concerns about the world's largest economy slowing down.

But the geopolitical risks surrounding the Middle East on Thursday put a drag on the local market, triggering foreigners to refrain from making risky bets.

Next week, the pace of the foreign inflow is forecast to slow, analysts said, as weaker than expected data from the U.S. and China are anticipated to further sap investor sentiment.

"Recent U.S. economic data seem to have been sluggish throughout all sectors except for the job market. China's March PMI index is also predicted to have slowed further from last month," said Ko Seung-hee, an analyst at KDB Daewoo Securities Co.

This week, offshore investors' net buying of local equities reached 114.1 billion won, with that of individuals amounting to a net 370 billion won. Institutions, however, sold off a net 357.7 billion won in the same period.

Automakers and banks declined the most this week, falling 4.3 percent and 3.2 percent, respectively. Among the gainers were brokerage firms and foodmakers, each rising 4.6 percent and 2.4 percent.

elly@yna.co.kr
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