South Korean stocks are likely to trade in a narrow range next week as the second-quarter earnings season kicked off on a downbeat note, analysts said Saturday. 

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,076.79 on Friday, spiking 2.24 percent from a week earlier.

The index climbed as the Greek debt deal and the rebounding Chinese market lifted investor sentiment, which was corroborated by a landmark deal on Iran's nuclear program on Wednesday.

With uncertainties in the global market subdued, investors digested mixed corporate news ahead of the upcoming quarterly earnings announcement.

Lingering worries over the grim business outlook for market heavyweights were underlined on Friday when heavy losses by sluggish shipbuilders and automakers weighed down on the broader market.

Investors will focus on the latest quarterly earnings results in the coming week, which are expected to fall below the market expectation due to lukewarm exports and Middle East Respiratory Syndrome that has killed 36 people since its first outbreak on May 20.

"As lingering uncertainties surrounding the global economy mostly cleared out, investors will reorganize their portfolio depending on corporate performances," said Ko Seung-hee, an analyst from KDB Daewoo Securities. "The local equity market is expected to move in a tight range, showing different performances from sectors."

South Korea on Thursday reported gross domestic product for the second quarter. The Bank of Korea cut rates in June and the government has pushed for a supplementary budget to shore up the flagging economy from weak exports and the MERS fallout.

On Friday, Markit Economics will release the June Purchasing Manager's Index to give clues of growth in the eurozone economy. (Yonhap)