Shares forecast to remain range-bound this week

South Korean shares are expected to remain in a tight range this week as investors are forecast to take the sidelines ahead of key economic events around the globe, analysts said.

The benchmark Korea Composite Stock Price Index closed at 2,016.19 points on Friday, up 0.40 percent from a week ago.

The index started almost unchanged this week as investors took to the sidelines waiting for the U.S. Federal Open Market Committee meeting results.

This week, investors are forecast to await the release of the U.S. Institute for Supply Management Index and China‘s Purchasing Managers Index, the analysts said.

Last week, foreign investors scooped up local stocks worth 897.7 billion won ($798.3 million), while institutional investors sold 232.3 billion won. Foreign investors extended their buying binge to a 17th consecutive day as of Friday.

“Foreign investors are expected to continue to scoop up South Korean shares this week on the back of extended monetary easing in major economies and less global threats, but local institutional investors may continue to sell stocks,” KDB Daewoo Securities Co. said in a report.

Shipping companies and steelmakers were among the winners while pharmaceutical and semiconductor stocks traded bearish last week. (Yonhap)