Seoul shares to move in tight range next week amid protectionist concerns

By Yonhap

Published : March 24, 2018 - 12:25

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South Korean shares are expected to move in a tight range next week as investors remain cautious due to growing concerns over trade protectionism by major economies.

The benchmark Korea Composite Stock Price Index is likely to stay between 2,460 and 2,540, as export-oriented stocks remain vulnerable to the looming trade dispute between Washington and Beijing.

In response to the Trump government's plan to impose 25 percent tariffs on US$50 billion worth of Chinese imports, China said it may raise tariffs on U.S. goods, escalating the conflict between the two economic powerhouses.

(Yonhap)

Analysts warn it could spark a global trade war and further affect export stocks in global bourses.

Influenced by the trade dispute between the G2, the Kospi ended down 3.18 percent at 2,416.76 on Friday, with share prices of major exporters such as Samsung Electronics. and Hyundai Motor all posting sharp losses.

But the index was not affected much by the Fed's rate increase on Thursday, as the move had already been reflected in the market.

"This week, the Kospi may also be influenced by the earnings expectations of leading companies such as Samsung Electronics in the first quarter," NH Securities analyst Kim Byeong-yeon said in a research note.

He also said that investors may reorganize their portfolios depending on the result of Samsung Electronics' earnings guidance for the January-March period to be released in early April.

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Seoul shares to move in tight range next week amid protectionist concerns

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