Seoul shares likely to move in tight range next week

South Korean stocks are likely to move in a tight range next week after a continued rally this week as investors take a breather.

Despite a surge in new daily COVID-19 cases, the Korea Composite Stock Price Index (KOSPI) closed at an all-time high of 2,633.45 points Friday, up 3.72 percent from a week ago.

The KOSPI exceed the 2,700-point mark for the first time Friday on extended foreign buying, buoyed by vaccine hopes and expectations of better earnings for exporters, particularly the chipmakers.

Experts said the KOSPI is likely to stay in a boxed range next week until the simultaneous expiration for stock futures and options, set for Thursday. 

"The most significant event in next week's stock markets is the December expiration for futures and options," NH Investment & Securities analyst Noh Dong-kil said. 

"Whether foreigners are willing to hold on to their KOSPI 200 futures will affect the KOSPI's performance," he said.

Analysts said investors will be tempted to lock in recent gains.

During the 4-day winning streak that ended Friday, offshore investors net bought 1.57 trillion won ($1.45 billion) at the main bourse, while institutions sold a net 778 billion won and individuals offloaded a net 758 billion won. (Yonhap)