South Korean shares are likely to trade in a tight range in the coming week on valuation concerns, analysts said Saturday.

The benchmark Korea Composite Stock Price Index closed at 2,396.69 points on Friday, up 1.2 percent from 2,368.25 a week ago.

The index wavered the entire week, roiled by more investors questioning whether stock prices had risen too far beyond their proper values. Such hesitation was a factor in the last session, which finished nearly flat, up 0.01 percent.

Local analysts predicted another week of high uncertainties.

"The growing uncertainties from US tech heavyweights are likely to strain the local stock markets, but they can help differentiate individual IT firms by their value," NH Investment & Securities analyst Noh Dong-kil said.

"As the KOSPI nears 2,400-point level, shares related to software and health care have shown lackluster performances, while IT-related stocks continue to seize investors' eyes," he added.

Analysts expected a positive push from the next US Federal Open Market Committee meeting, set to be held Tuesday-Wednesday (US time).

In its last meeting, the FOMC revealed a shift of mid- and long-term policy in its inflation target.

Market consensus is that the FOMC is likely to unveil more detailed easing plans, such as stronger forward guidance and asset-buying plans, to buoy the pandemic-hit market.

"Even if the FOMC decides to take more time in considering its policy changes, it is unlikely to reduce the investor appetite for risky assets," Lim Hye-yoon, a researcher at KTB Investment & Securities, said.

In the coming week, China's August retail sales data will be published Tuesday.

US August retail sales data is due Wednesday and the FOMC meeting results will be announced on Thursday in Korea time. (Yonhap)