S. Korean stocks to move in tight range next week

SEOUL, Oct. 17 (Yonhap) -- South Korean stocks are likely to move in a tight
range next week amid investor concern that a strong local currency could rein in
the recent bull run, analysts said Saturday.

The country's key stock index, the KOSPI, ended 0.4 percent lower this week to
close at 1,640.36 Friday amid concerns about declining earnings momentum and the
strengthening currency.
"The stock market may come under selling pressure due to concerns about falling
earnings momentum, but it could be offset by strong foreign buying," said Lee
Ju-ho, an analyst at Woori Investment & Securities.
POSCO and other major companies reported better than expected earnings for the
July-September period, but the strengthening currency may hurt exporters'
earnings, analysts said.
The won's rise to 1,150 to the dollar is spawning worries that local exporters
are losing their competitiveness in the global market.
Analysts said investors may be readjusting portfolios by replacing exporters with
domestic-focused stocks which could benefit from the strong local currency.
"Banking, steel and construction shares may benefit from the strong local
currency," said Rhyu Yong-seok, an analyst at Hyundai Securities.
Meanwhile, U.S. stocks closed lower Friday on disappointing earnings reports from
General Electric and Bank of America.
The blue-chip Dow Jones industrial average dropped 0.67 percent to close at
9,995.91, and the technology-heavy Nasdaq Composite Index fell 0.76 percent to
2,156.80.
For the week, the Dow climbed 1.33 percent, and the Nasdaq rose 0.82 percent.
sam@yna.co.kr
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