Seoul shares likely to stay range-bound ahead of key events, earnings next week

SEOUL, Oct. 5 (Yonhap) -- South Korean shares are expected to trade in a limited range next week ahead of trade talks between the world's two largest economies, analysts here said Saturday.

The Korea Composite Stock Price Index (KOSPI) fell 11.22 points, or 0.55 percent, to close at 2,020.69 on Friday, down from 2,049.93 points a week ago.

The index advanced slightly in the first two trading days of this week but dropped nearly 2 percent on Thursday after weak manufacturing data from the United States and Europe reignited concerns over a slowing global economy.

Analysts said investors will move more carefully next week until they learn the results of the U.S.-China trade talks scheduled to resume in Washington on Thursday (local time). They will also pay attention to the release of minutes from the September meeting of the U.S. Federal Open Market Committee (FOMC) to get clues for possible rate cuts.

"Expectations of the U.S. and China reaching a 'small deal' are getting lower, although the two sides will likely agree on holding additional trade talks in November," Kim Byung-yeon, an analyst at NH Investment & Securities, said.

"With disappointing economic data released this week, investors will also want to check the odds of the Fed's potential rate cut and its assessment of recent economic situations."

Analysts said local investors will also look closely at earnings results from market heavyweights, including Samsung Electronics, which is set to announce its third-quarter earnings guidance on Tuesday.

This week, foreigners sold more than a net 401 billion won (US$335 million) worth of local stocks. Retail investors scooped up a net 346 billion won, while institutions bought a net 16.3 billion won on the Seoul bourse.

Most large caps were losers this week, except pharmaceutical shares. Led by industry leader Celltrion, pharmaceutical shares gained on average 2 percent this week on the KOSPI.
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