Seoul bourse to trade in thin range next week: analysts

SEOUL, Jan. 31 (Yonhap) -- The South Korean stock market is expected to trade in a narrow range next week as concerns over the deepening economic slump and weak corporate earnings will continue to bear down on sentiment, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed the
holiday-shortened week at 1,162.11, up 6.28 percent from the previous week. The
Seoul course was closed Monday and Tuesday for the Lunar New Year holiday.
Despite the announcement of worse-than-expected earnings reports, the KOSPI
gained ground due to stock buying by foreign and institutional investors.
The news that German chipmaker Qimonda AG filed for bankruptcy helped lift Korean
tech shares like Samsung Electronics as the failure of their rival will likely
alleviate a market glut and boost market shares of local chipmakers.
But analysts said the KOSPI is forecast to trade in a narrow range as planned
announcements of economic data at home and abroad will likely reinforce
investors' pessimistic views about the economic slump.
"The global economic recession is denting the Korean economy, which takes a toll
on corporate earnings. Sluggish economic data will weigh on the local stock
market," said Bae Sung-young, an analyst at Hyundai Securities Co.
South Korea plans to announce export figures and consumer prices for January and
the United States will release its job data and index for manufacturers' business
activity.
Experts also say that investors are expected to focus on a rate decision by the
European Central Bank (ECB) next week.
sooyeon@yna.co.kr
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