South Korean shares will likely take a breather next week ahead of the Federal Reserve's rate-setting meeting early next month, local analysts said Saturday.
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1974.46 on Friday, only slightly down from 1,974.58 a week earlier.
Investors were mostly swayed by increased volatility in the won-dollar exchange rate amid what the analysts called a lack of any apparent leads this week.
Foreigners purchased a net 446 billion won (US$379 million), while institutions scooped up a net 501.68 billion won. Retail investors offloaded a net 418.54 billion won.
"Investors will likely wait and see the outcome of the OPEC meeting next week, and then various economic indicators due next week, including GDP and employment figures in the U.S.," Bookook Securities analyst Kim Sung-hwan said.
"But even if those figures show improvements in economic conditions, their impact on the market will likely be limited as the strong U.S. dollar continues to affect the global foreign exchange market," he added.
The analyst said investors will also remain cautious to see the outcome of the Federal Open Market Committee next month.
The local currency closed at 1,177.40 won against the U.S. dollar on Friday, up 5.80 won from a week earlier. (Yonhap)
The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1974.46 on Friday, only slightly down from 1,974.58 a week earlier.
Investors were mostly swayed by increased volatility in the won-dollar exchange rate amid what the analysts called a lack of any apparent leads this week.
Foreigners purchased a net 446 billion won (US$379 million), while institutions scooped up a net 501.68 billion won. Retail investors offloaded a net 418.54 billion won.
"Investors will likely wait and see the outcome of the OPEC meeting next week, and then various economic indicators due next week, including GDP and employment figures in the U.S.," Bookook Securities analyst Kim Sung-hwan said.
"But even if those figures show improvements in economic conditions, their impact on the market will likely be limited as the strong U.S. dollar continues to affect the global foreign exchange market," he added.
The analyst said investors will also remain cautious to see the outcome of the Federal Open Market Committee next month.
The local currency closed at 1,177.40 won against the U.S. dollar on Friday, up 5.80 won from a week earlier. (Yonhap)
