South Korean stocks are expected to trade in a tight range this week as investors are anticipated to sit on the sidelines on a possible tapering of the U.S. quantitative easing measures and the crisis in Syria, analysts said.
The benchmark Korea Composite Stock Price Index advanced 1.5 percent as of Friday from a week earlier.
Seoul shares lost ground as the rising woes in the Middle East following the prospect of a U.S.-led military attack on Syria dented investors’ sentiment.
The U.S. claimed it has evidence to prove the Syrian government used chemical weapons on its own people, but two of its main allies, Britain and France, said they will wait until the United Nations finishes its investigation into the alleged use of the deadly weapons to make any decisions.
The local stock market, however, gathered ground later last week as the Purchasing Managers Index for the eurozone’s manufacturing sector in August reached the highest level since July 2011 at 51.4, while that of China also came to 50.1, the highest level in four months.
The PMI is an index that measures the health of a country’s manufacturing sector. A reading of 50 or above represents an expansion of the sector from the previous month, while a reading of below 50 represents a contraction.
Seoul shares also traded bullish on the market outlook that U.S.-led military action on Syria is anticipated to last for fewer than 60 days, and it will refrain from dispatching ground forces to the Middle Eastern country.
Weekly foreign net buying totaled 1.2 trillion won ($1.09 billion), followed by institutions with a net 66 billion won. In contrast, individuals offloaded a net 900 billion won.
Analysts said Seoul shares will trade flat next week as investors are keeping their eyes on the U.S. Federal Open Market Committee’s two-day regular monetary meeting, which is slated for Sept. 17-18.
The meeting is anticipated to provide investors with more details in the schedule of the Fed’s tapering of its quantitative easing moves.
A monetary easing move by an advanced country usually causes investors to set their sights on riskier emerging markets, while a reduction in the move sparks them to relocate their investments.
“The rising crisis in Syria will also have an adverse impact on the market as it will lead to a price hike in global oil prices,” said Han Chi-hwan, a researcher at KDB Daewoo Securities.
Builders gathered ground this week by rising 4 percent, followed by chemicals and logistics with 3 percent. In contrast, insurers and mobile carriers shed 1 percent. (Yonhap News)
The benchmark Korea Composite Stock Price Index advanced 1.5 percent as of Friday from a week earlier.
Seoul shares lost ground as the rising woes in the Middle East following the prospect of a U.S.-led military attack on Syria dented investors’ sentiment.
The U.S. claimed it has evidence to prove the Syrian government used chemical weapons on its own people, but two of its main allies, Britain and France, said they will wait until the United Nations finishes its investigation into the alleged use of the deadly weapons to make any decisions.
The local stock market, however, gathered ground later last week as the Purchasing Managers Index for the eurozone’s manufacturing sector in August reached the highest level since July 2011 at 51.4, while that of China also came to 50.1, the highest level in four months.
The PMI is an index that measures the health of a country’s manufacturing sector. A reading of 50 or above represents an expansion of the sector from the previous month, while a reading of below 50 represents a contraction.
Seoul shares also traded bullish on the market outlook that U.S.-led military action on Syria is anticipated to last for fewer than 60 days, and it will refrain from dispatching ground forces to the Middle Eastern country.
Weekly foreign net buying totaled 1.2 trillion won ($1.09 billion), followed by institutions with a net 66 billion won. In contrast, individuals offloaded a net 900 billion won.
Analysts said Seoul shares will trade flat next week as investors are keeping their eyes on the U.S. Federal Open Market Committee’s two-day regular monetary meeting, which is slated for Sept. 17-18.
The meeting is anticipated to provide investors with more details in the schedule of the Fed’s tapering of its quantitative easing moves.
A monetary easing move by an advanced country usually causes investors to set their sights on riskier emerging markets, while a reduction in the move sparks them to relocate their investments.
“The rising crisis in Syria will also have an adverse impact on the market as it will lead to a price hike in global oil prices,” said Han Chi-hwan, a researcher at KDB Daewoo Securities.
Builders gathered ground this week by rising 4 percent, followed by chemicals and logistics with 3 percent. In contrast, insurers and mobile carriers shed 1 percent. (Yonhap News)