South Korean stocks are expected to move in a tight range next week as investors await the US Federal Reserve’s rate decision amid ongoing trade talks between Washington and Beijing, analysts said Saturday.
The benchmark Korea Composite Stock Price Index closed at 2,176.11 points Friday, up 1.8 percent from a week earlier.
The index rose for four days except Wednesday following heavy losses the previous week.
Investors kept a close watch on the latest developments in US-China trade negotiations and chaos surrounding Britain’s exit from the European Union, its key trading bloc.
|Reporters stand by at the Korea Exchange on Friday, as prosecutorial officials raid the bourse over its alleged involvement in Samsung BioLogics’ accounting fraud case. (Yonhap)|
Samsung BioLogics tumbled 8.6 percent this week amid prosecutors’ widening probe into the firm’s alleged accounting fraud.
Banks, insurance and telecoms were among the top gainers, while bio, machinery and utilities were at bottom.
“If the US Federal Reserve takes a dovish stance in the upcoming meeting, it could boost appetite for riskier assets,” Ahn Jin-a, an analyst at eBEST Investment & Securities, said.
“Investors will continue to closely monitor news from trade talks between the United States and China, which could affect South Korea’s export prospects.”
The next Federal Open Market Committee meeting is slated for March 19-20, with market watchers widely expecting to take a dovish stance amid global economic uncertainties.