Seoul stocks expected to move tightly on uncertainties

All News 10:00 July 21, 2018

SEOUL, July 21 (Yonhap) -- South Korean shares are expected to move in a limited range as investors digest second-quarter corporate earnings amid lingering concerns over global trade protectionism, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,289.19 on Friday, down 0.94 percent from a week ago.

This week, the market recorded a four-day losing streak before inching up on the last session of the week due to economic uncertainties both at home and abroad.

Major economies, including the U.S., China and European Union, have been involved in trade disputes, negating some positive assessments on the U.S. economy by its policy makers.

At home, the government raised the minimum hourly wage 10.9 percent to set it at 8,350 won (US$7.36) for next year, while cutting its growth estimate to 2.9 percent this year from its earlier projection of 3 percent.

Next week, investors will closely watch major listed firms, such as Hyundai Motor Co. and SK hynix Inc., as they are scheduled to release their first-half earnings results.

"Their total operating profits are forecast to have grown on-year in the second quarter but it would not add that big a momentum to the stock market, as experts' consensus has been lowered recently," said Jo Yeon-joo, an expert at NH Investment & Securities.

"The macro-economic picture also seems to be far from bright due to continuing developments regarding trade protectionism and concerns over the sagging domestic economy," the analyst added, also predicting that the market would not move much.