South Korean stocks are expected to hover around the psychologically important 2,000-point mark range this week as the market waits on key economic data from the United States and Europe, local analysts said.

The country’s key stock index, the KOSPI, closed at 2,008.91 on Friday, down 0.99 percent from a week earlier. The numbers represent a 1.12 percent or 22.28 point gain from the previous session.

The bourse’s weekly loss reflected weak employment numbers in the United States, concerns over sluggish growth in China and the planned launch of North Korea’s long-range rocket that could fuel geopolitical risks in the region, all of which are bad for the stock market.

Such worries caused the KOSPI to loose ground for three straight trading sessions with the key index falling to a low of 1986.63 on Thursday’s close, before the bourse bounced back the following day despite the launch of North Korea’s Unha-3 rocket.

“The KOSPI is expected to move around the 2,000-point range, falling and rising depending on economic developments, with no real trend or direction,” said Lee Seung-ho, an analyst at Daishin Securities.

He added there may be resistance to stocks falling because some stocks are viewed as being undervalued and also because of South Korea’s relatively stable economic fundamentals.

Others said the local stock market will be affected by housing data from the United States, macroeconomic statistics from the European Union and expectations the Chinese economy may have hit bottom in the first quarter and is poised for a rebound in the coming months.

“Rumors that some countries may be considering economic stimulus programs could positively affect the market,” a market watcher said. (Yonhap News)