South Korean shares are expected to extend their gains next week getting a boost from a widely expected stimulus step by the European Central Bank, analysts said Saturday.
The benchmark Korea Composite Stock Price Index closed at 2,028.99 points on Friday, up 2 percent from a week ago.
Earlier this week, Seoul shares started higher as investors' concerns over the U.S. Fed's rate policy eased following the release of its Federal Open Market Committee's minutes.
But the gains were limited later after Turkey brought down a Russian bomber on Tuesday, which, Ankara alleges, violated the country's airspace near the Syrian border, escalating geopolitical tensions.
The main index managed to rebound as investors sought after undervalued blue chips amid a brighter outlook of their earnings. On Friday, the market closed nearly flat amid an absence of market-moving news.
Analysts said Seoul shares are anticipated to continue to build up gains next week as the European Central Bank is set to announce stimulus moves.
"If the eurozone expands their quantitative easing, we can anticipate an influx of capital from Europe," said Koh Seung-hee, an analyst at KDB Daewoo Securities Co. "But the market will be disappointed if they only cut rates."
Foreigners offloaded 461.8 billion won worth of local stocks this week, while individuals sold more shares than they bought at 714.2 billion won. Institutions scooped up a net 645 billion won.
Retailers and food-related shares were among the winners by rising 5.2 percent and 3.4 percent each, while automakers and utilities traded bearish this week by moving down 2.1 percent and 0.9 percent. (Yonhap)
