S. Korean stocks expected to move in tight range next week

SEOUL, Jan. 23 (Yonhap) -- South Korea's stock market is expected to trade in a
tight range next week amid worries a U.S. government plan to reign in bank
risk-taking will weigh on investor sentiment, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) ended at 1,684.35 on
Friday, down 17.45 points, or 1.03 percent, from one week earlier.
The Seoul bourse started strong this week, exceeding 1,720 at one point. But the
market gave up more than it gained later after U.S. President Barack Obama said
his government will limit investment activities by financial institutions in
hopes of preventing a repeat of the financial crisis.
Financial shares were among the hardest hit, with other large-cap shares also
losing ground on worries over a possible contraction in market liquidity.
On Friday, the Dow Jones industrial average plunged 2.1 percent, following a
sharp decline the previous day, dimming outlooks for South Korean and Asian
markets, which usually track ups and downs on Wall Street.
Analysts say Korean stocks will inevitably face a sluggish start next week, but
that its recent momentum will not be turned south easily. The market is expected
to move in a tight range on the kind of bargain hunting that helped trimmed falls
later this week, they added.
"Despite the external shocks, it is too early to say that the KOSPI has lost its
recent upward momentum," said Lee Kyung-min, an analyst at Woori Investment
Securities Co.
"If the gauge can stay around the 1,660-1,670 level, the market is expected to
move in a recently-formed tight range throughout next week," he added.
Investors will likely pay more attention to upcoming fourth-quarter earnings
results by heavyweights such as Samsung Electronics Co. and Hyundai Motor Co.,
analysts said.
South Korea's central bank will announce fourth-quarter gross domestic product
data this week, which will also provide a glimpse into economic conditions and
help investors determine the direction of the overall equity market, they added.
kokobj@yna.co.kr
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