South Korean shares are likely to remain in a tight range next week, while testing whether it can breach the 2,300 point mark amid hopes of an extra budget being pushed forward by President Moon Jae-in, analysts said Saturday.

   The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2.286.02 points on Friday, up 2 percent from a week ago.

   This week the local stock market was boosted by expectations of an economic stimulus by the new administration, although it took a breather on Friday in the face of a massive foreign sell-off.

   Moon has pledged to protect South Korea's fragile economic recovery with a 10 trillion won (US$8.9 billion) supplementary budget.

   While concerns remain that the local stock market may be overheated, some analysts said record low interest rates and the new government's economic policies have the ingredients for a bull market.

   Cho Yong-joon, head of the research center at Hana Financial Investment, said in a research note that it is only "a matter of time" before the KOSPI makes further gains.

   "Expectations about policies by the government, along with risk appetite sentiment, are all expected to exert a positive effect on the market," Cho said. (Yonhap)