[THE INVESTOR] South Korean share prices are expected to remain in a tight range next week as investors wait for key economic events and take profit, analysts said on July 23.
On July 22, the benchmark Korea Composite Stock Price Index had closed 0.34 percent down from a week ago to 2,010.34 points.
This week, foreign investors scooped up stocks worth 800 billion won (US$704 million). They extended their buying binge to an 11th consecutive day on Friday. But experts say rising expectation for a rate hike in the US will cap local stocks. On July 27, the US Federal Reserve will decide its policy rate.
“A steady rise in the local stock market may be in the offing, but its pace may be limited,” Koh Seung-hee, an analyst at KDB Daewoo Securities told the media.
Industry watchers also expect local institutional investors to engage in a sell-off to meet bond redemptions on low interest rates.
(theinvestor@heraldcorp.com)
김지현기자@heraldcorp.com