Seoul shares forecast to remain in tight choppy range next week

SEOUL, Nov. 11 (Yonhap) -- Shares on the Seoul bourse are expected to move in a tight choppy range next week as investors take to the sidelines amid mixed market-moving factors, including the South Korea-China summit meeting, analysts said Saturday.

The benchmark Korea composite Stock Price Index (KOSPI) closed at 2,542.95 points on Friday, down 0.59 percent from an all-time high of 2,557.97 a week ago.

This week, the local stock market started lower, as investors opted to cash in recent gains after the main bourse rallied last week to renew historic record highs.

U.S. President Donald Trump's visit to South Korea and a summit between the two countries' leaders also led investors to take a wait-and-see stance.

The results of the bilateral summit between President Moon Jae-in and his Chinese counterpart Xi Jinping, which will take place in Vietnam later in the day on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, is forecast to become a market moving event for next week, analysts said.

Expectations have been growing over the improvement in their ties long estranged by the deployment of a U.S. missile defense system in South Korea.

"The thaw in Seoul-Beijing relations will be a positive lead for the local stock market next week," said Kim Byong-yun, an analyst at NH Investment & Securities Co.

Meanwhile, uncertainties over U.S. tax reform and China's market data to be released next week could act as a drag on the local stock market, according to analysts.

scaaet@yna.co.kr
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