S. Korean stocks to remain stagnant next week on earnings concerns

SEOUL, Jan. 24 (Yonhap) -- South Korean stocks are forecast to emain stagnant next week as more companies are expected add to the "earnings shock" by disclosing dismal earnings reports, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) finished the week at
1,093.4, down 41.8 point, or 3.68 percent, from the previous week, as grim
corporate earnings and gloomy economic data weighed on the key index.
Samsung Electronics, the world's largest memory-chip maker, reported on Friday
its first-ever quarterly net loss for the October-December period last year after
the central bank said a day earlier the country's economy shrank for the first
time in 11 years in the same period.
Overseas and institutional investors were net sellers this week, leading the
KOSPI's downswing. Foreigners reduced their holdings of local shares for four
sessions in five days while institutions remained net sellers throughout the
week.
"The KOSPI is expected to be confined to within the 1,050-1,100 range next week
as the index digests more bad news along with hopes of another government-led
stimulus package," said Lee Seung-woo, an analyst at Daewoo Securities.
More earnings reports from local firms, including financial institutions, are
expected to hit the local market next week with an interest rate decision
scheduled for early February.
Local stock markets will resume trading Wednesday after closing Monday and
Tuesday for the Lunar New Year holiday.
pbr@yna.co.kr
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