South Korean stocks are expected to move in a tight range this week with investors sitting on the sidelines amid the announcement of fourth-quarter performances of local firms, analysts said.
The benchmark Korea Composite Stock Price Index finished at 2,011.94 in the first week of 2013, up 0.75 percent from the previous week.
The KOSPI soared in the first trading session of this year on rising optimism following the settlement of the U.S. fiscal cliff issue.
The U.S. Congress passed a budget bill that may avert some automatic tax increases and spending cuts on Tuesday.
South Korean tech behemoth Samsung Electronics, which ended at all-time high of 1,576,000 won ($1,323) on Wednesday by soaring 3.55 percent, also added to the market gain.
However, the KOSPI declined later in the week after the U.S. Fed’s December policy meeting, which showed that the central bank is considering scaling back its stimulus measures sooner than expected.
Weekly foreign net-buying totaled 240 billion won, while institutions scooped up 30 billion won worth of shares. Retail investors, on the other hand, offloaded shares worth 270 billion won.
Analysts said the KOSPI is likely to remain stagnant this week as investors are expected to take a wait-and-see stance on the scheduled announcement of fourth-quarter performances.
“Shares will be traded in a limited range, as the country’s listed firms are predicted to show dull performances for the fourth quarter,” said Lee Seung-woo, an analyst at KDB Daewoo Securities Co.
Lee added that the appreciation of won against the greenback will also come as a major drag on the local stock market.
Most shares traded higher last week, with medical firms advancing 12.6 percent, while brokerage houses and construction firms added 4.4 percent and 2.3 percent, respectively.
In contrast, carmakers lost 3.9 percent, followed by textiles with 1.6 percent and logistics firms with 0.6 percent. (Yonhap News)
