South Korea's main stock index will likely move in a tight range next week as the market awaits some key U.S. and local companies' quarterly earnings results amid a lack of positive leads, analysts said Saturday.
"The market will likely remain volatile next week swinging between gains and losses due to a number of lingering uncertainties," said Kim Jung-hyun, an analyst at Goodmorning Shinhan Securities.
The benchmark Korea Composite Stock Price Index (KOSPI) finished at 1,360.56 this week, down 2.00 percent from a week earlier as a tumble in U.S. tech issues dampened investor sentiment and sent the local bourse lower.
U.S. tech issues dipped last week as IBM, the world's biggest computer-services company, and Intel, the world's No. 1 computer chipmaker, released disappointing quarterly earnings reports and Apple suggested next quarter's results will fail to beat market expectations.
"Investors will wait on the sidelines ahead of some leading companies' fourth-quarter earnings numbers," said Lee Kyung-Soo, a senior analyst at Daewoo Securities.
Local companies scheduled to unveil fourth-quarter earnings results next week include consumer electronics giant LG Electronics, top carmaker Hyundai Motor, its smaller affiliate Kia Motors, No. 1 auto parts maker Hyundai Mobis and leading fixed-line operator KT.
U.S. companies slated to announce quarterly corporate earnings next week include wireless technology giant Qualcomm, the world's largest online auctioneer EBay and the world's largest software maker Microsoft.
"The Japanese currency's growing weakness against the greenback will also weigh down on South Korean exporters, tarnishing their upbeat quarterly results," Lee added. "A weaker yen to the greenback will further undermine local goods' price-competitiveness in overseas markets as our key exports are in fierce competition with Japan's."
The Bank of Japan's decision Thursday to hold its key rate steady for a sixth straight month at 0.25 percent sent the yen to near a four-year low against the dollar.
The won gained almost 9 percent against the greenback last year, making South Korean products more expensive abroad and undermining exporters' profits when converted into the local currency.
Seoul, Jan. 20 (Yonhap News)
Seoul bourse to move sideways next week |
