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 a
range-bound trading as investors await results of fourth-quarter earnings reports
from major U.S. financial companies due 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 a 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 semiconductor
sectors.
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 have 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 a fresh momentum in overseas market."
If last quarter's earnings exceed market expectation, it could trigger hefty
foreign buying in Seoul market, 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 fare larger
influence than results of fourth-quarter earnings, others added.
"Macroeconomic factors are wielding an increasing influence on 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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