Seoul shares likely to move in tight range next week

By Lee Youkyung
SEOUL, Jan. 16 (Yonhap) -- South Korean stocks are likely to move in range-bound
trading as investors await fourth-quarter earnings reports from major U.S.
financial companies due out next week, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) ended at 1,701.80 on
Friday, up 6.54 points, or 0.14 percent, from one week earlier.
The Seoul bourse got off to a weak start, with steep appreciation of the local
currency weighing on large-cap exporters. China's reserve requirement raise
further beat down the key index, triggering wide sell-offs.
But the KOSPI recouped its losses on the back of Intel Corp.'s stellar earnings
result, which boosted recovery hopes for personal computers and semiconductors.
With Samsung Electronics having already disclosed its preliminary fourth-quarter
earnings and top steelmaker POSCO having unveiled its earnings as well, investors
are likely to pay keen attention to U.S. earnings reports due in the coming week,
analysts said.
"Local companies' earnings momentum has slowed due to the rising local currency
and gas prices," said Bae Sung-young, an analyst at Hyundai Securities. "So the
KOSPI's additional gains hinge on finding fresh momentum in overseas markets."
If last quarter's earnings exceed market expectations, hefty foreign buying in
the Seoul market could be triggered, analysts said. U.S. financial companies,
including Goldman Sachs Group and Citigroup, are among the major firms due to
announce their fourth-quarter results in the coming week.
Foreign currency exchange rates and commodity prices are likely to have more
influence than fourth-quarter earnings results, others added.
"Macroeconomic factors are wielding an increasing influence on the local market,
so the impact from earnings reports may be limited," said Lee Seung-woo, an
analyst at Daewoo Securities. "It may take more time for the KOSPI to land above
1,700 points."
ylee@yna.co.kr
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