An electric signboard is seen on the trading floor of Hana Bank in Myeongdong, Seoul, on Dec. 24, 2021. (Yonhap)
SEOUL, Dec. 25 (Korea Bizwire) — South Korean stocks are expected to move in a tight range next week, as investors will likely remain wary over uncertainties from the omicron coronavirus variant and rising tensions between the United States and Russia over Ukraine, analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) added 6.02 points, or 0.2 percent, this week from last week, closing at 3,012.43 on Friday.
The main index started down about 1.8 percent Monday but rebounded after U.S. President Joe Biden assured putting his country under another COVID-19 lockdown is not on the table.
The U.S. Food and Drug Administration’s Emergency Use Authorization for Merck’s antiviral pill and Pfizer’s Paxlovid for COVID-19 treatment helped ease market worries.
“The overall risks are likely to be alleviated, although uncertainties remain with the possibility of limited stronger quarantine measures by governments in other countries,” Kim Young-han, an analyst at NH Investment & Securities Co.
Also in focus would be the fresh tensions between the U.S. and Russia over the deployment of Russian troops to the borders with Ukraine, and whether the issue will be resolved soon through talks, which U.S. officials have said would take place early next month, Kim noted.
Trading volumes of Seoul stocks are also expected to remain less than moderate throughout next week, given that it is the final week before the new year, typically a period for books closing and listed firms to trade ex-dividend, according to the analysts.
The local stock market will run until next Thursday for this year.
This week, foreigners scooped up a net 306.1 billion won (US$257.8 million) worth of local equities, with institutions buying a net 1.58 trillion won, while individual investors unloaded a net 2.01 trillion won.
(Yonhap)
