SKorean market likely to be rangebound next week: analyst

South Korean currency traders talk in front of screens showing South Korea's benchmark stock index in a dealing room at the Korea Exchange Bank in Seoul on September 17, 2009 (AFP photo)

SEOUL, Sept 18, 2009 (AFP) - South Korean stock are likely to move in a short range next week, analysts said Friday.

The benchmark KOSPI rose 2.9 percent from a week ago to 1,699.71 Friday.

Choi Sung-Rak of SK Securities told Dow Jones Newswires that players would closely watch the movement of the US dollar and a US Federal Open Market Committee meeting next week.

"Local stock prices are likely to be swayed by the movement of the US dollar," he said. "If there are any signs of the greenback regaining strength, foreign investors will reduce their buying orders in emerging markets,"

Choi said the index may move in the 1,700 range.

Shinhan Investment analyst Lee Sun-Yeop said recent rallies might be short-lived.

"The drastic increase in foreign buying might indicate there are more foreign buyers who are seeking short-term benefits from a weak US dollar," he said.

Many short-term investors appear to be taking advantage of the gap between low US interest rates and high South Korean rates, Choi added.

Source: AFP

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