South Korea’s stock market may inch up this week on strong exports though it will likely move in a very tight range, analysts said.

The benchmark Korea Composite Stock Price Index closed at 1,957.79 on Friday, up 0.6 percent from a week earlier.

The KOSPI had a weak start last week as the local currency continued to rise against the U.S. dollar, raising concerns over weak earnings by major exporters.

The Korean won gained 19.6 percent against the Japanese yen last year, putting South Korean exporters at a significant disadvantage against their Japanese competitors.

The KOSPI breached the 1,960 mark after institutional investors turned to buying, but again inched down after the U.S. reported that its fourth-quarter gross domestic product posted a negative 0.1 percent growth.

This week, foreign investors offloaded a net 700 billion won ($639 million) worth of shares with retail investors also selling 150 billion worth of shares. Institutions, on the other hand, scooped up a net 850 billion in shares.

The analysts said the local stock market may rise in a tight range on strong exports.

The commerce ministry earlier said the country’s exports in January surged 11.8 percent from the same period last year as the local currency’s appreciation against hard currencies has yet to seriously affect export prices.

“Even if foreign stock markets undergo correction this week, the South Korean market will not be influenced greatly as it has already undergone correction,” said Lee Seung-woo, an analyst at KDB Daewoo Securities Co.

“The local market may attempt to move upward next week though the movement will not be too strong.” (Yonhap News)