Seoul shares forecast to remain range-bound next week

SEOUL, Aug. 13 (Yonhap) -- South Korean shares are expected to remain in a tight range next week as the Korean currency is likely to gain against the U.S. dollar, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,050.47 points on Friday, up 1.61 percent from a week ago, and hit fresh yearly highs.

The country's stock market started higher and extended its winning streak on the back of positive U.S. economic data and a rebound in global oil prices.

This week, foreign investors scooped up local stocks worth 636.9 billion won (US$576.5 million), while individual investors at home sold 860.3 billion won.

After global credit appraiser Standard & Poor's (S&P) raised South Korea's sovereign rating one notch to a record high of AA from AA- on Monday, the Korean currency has sharply gained against the U.S. dollar.

Kim Yong-koo, an analyst at Hana Financial Investment, said the won's strength is likely to weigh on the local stock market next week.

Some analysts say foreign investors' appetite for local stocks may remain firm on the back of extended monetary easing in major economies.

"There is a possibility that the KOSPI may rise further after a short-term correction, backed by foreigners' net buying on the won's strength," said Kim Sung-hwan, an analyst at Bookook Securities.

Next week, investors will closely watch the minutes of the Federal Open Market Committee's discussion of monetary policy in July, which will be released on Thursday.
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