Seoul stocks to move in tight range next week

SEOUL, Sept. 17 (Yonhap) -- South Korean shares will likely gain ground in the coming week as the global efforts to tackle the eurozone financial crisis are under way, but the gain could be capped by lingering uncertainties, analysts said Saturday. The benchmark Korea Composite Stock Price Index (KOSPI) closed at 1,812.93 on Friday, up 27.17 points, or 0.66 percent, from one week earlier. As suspicions over Europe's commitment to back debt-cutting efforts in Greece set off investor jitters, South Korean stocks nosedived on Wednesday, the first trading day of this week after a four-day hiatus for a public holiday. The key index recouped the losses in the following days, as leaders of Germany and France acted with chief governors of central banks in Europe to pump liquidity into financial markets. Foreign investors halted massive sell-offs on the Seoul bourse on Friday and switched to net buyers. The direction of local shares next week hinges on impending announcements from global financial policymakers, analysts said. Investors are keen to see the outcome of the meeting among eurozone financial leaders, which is under way in Poland this weekend, and the announcements from the Federal Open Market Committee meeting slated for Tuesday. If financial leaders from the European countries unveil more concrete measures to shore up market confidence, the local stock market will start higher, analysts said. But those short-term efforts will be insufficient to dispel worries about the long-term financial health of European countries, they added. "It is premature to declare the end of the eurozone financial crisis, so the KOSPI's rise will be limited," said Lee Seung-woo, an analyst at Daewoo Securities, cautioning against excessive optimism.