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

SEOUL, Jan. 9 (Yonhap) -- South Korean stocks are likely to move sideways next
week due to jitters over the local currency's possible rise against the U.S.
dollar and hopes of strong fourth-quarter corporate earnings, analysts said
Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,695.26 on
Friday, up 12.49 points from the previous week.
The index breached the 1,700-mark on Wednesday helped by foreign investors'
buying spree and robust global markets, while massive profit taking and jitters
over the South Korean won's ascent against the dollar sent it below the level
late last week.
The local currency rose to the 1,140-won level against the dollar for the first
time in about 15 months on Tuesday as foreign investors snapped up local stocks
and bonds.
If the won sharply rises versus the greenback, the local market may lose ground,
analysts said. The market, however, could get a lift next week from strong
corporate earnings for the fourth-quarter of last year, they said.
"Investors are still concerned over the volatility of the won, but the market may
take a cue from signs of an economic recovery in advanced markets like the U.S.
and an expansion in consumption in China," said Lee Joo-ho, an analyst at Woori
Investment Securities Co.
Lee Seung-woo, another analyst at Daewoo Securities Co. cautioned that
uncertainties related to exit strategies from stimulus policies, may be a reason
to drive the market lower.
ksnam@yna.co.kr
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