The benchmark Korea Composite Stock Price Index (Kospi) figures are displayed at a dealing room of a local bank in Seoul, Friday. (Yonhap)
South Korean stocks are likely to suffer an extended choppy trading next week as concerns about the rising US Treasury yields are expected to be eclipsed by simmering hopes for quicker-than-expected economic recovery.
The benchmark Korea Composite Stock Price Index closed at 3,039.53 points Friday, down 0.49 percent from a week ago.
Volatility ran high globally this week, as investors were largely swayed by the news related to the bond yield movement.
This week, foreigners sold a net 864 billion won ($764 million) on the main bourse, while retail investors net bought a 2.31 trillion won. Institutions offloaded a net 1.45 trillion won.
Analysts said the US bond yield anxiety would continue to grip the stock markets next week, putting the KOSPI in a tight range band.
"The US Federal Reserve relieved much of investors' distress about the tapering scenario but did not signal efforts to slow down the yield rates, leaving the yield uncertainties unresolved," NH Investment & Securities analyst Noh Dong-kil said.
"Its much-improved growth forecast, on the other hand, may buoy the rates and further increase uncertainties in the stock markets," he added.
The Fed revised its US growth forecast in 2021 to 6.5 percent, sharply up from the earlier 4.2 percent. The growth in 2022 was also raised by 0.1 percent to 3.3 percent. (Yonhap)