- January 27, 2021
- Posted by: Stratford Team
- Category: Markets
(RTTNews) – The South Korea stock market has finished lower in two of three trading days since the end of the three-day winning streak in which it had spiked almost 150 points or 4.8 percent. The KOSPI now sits just above the 3,140-point plateau and it’s expected to remain in that neighborhood again on Wednesday.
The global forecast for the Asian markets is mixed and little changed thanks to conflicting earnings data and a mild drop in crude oil prices. The European markets were slightly higher and the U.S. bourses were slightly lower and the Asian markets figure to split the difference.
The KOSPI finished sharply lower on Tuesday thanks to profit taking after the market hit a record closing high. Financials, industrials and technology stocks were hit especially hard.
For the day, the index tumbled 68.68 points or 2.14 percent to finish at 3,140.31 after trading between 3,132.67 and 3,209.18. Volume was 860 million shares worth 21.6 trillion won. There were 639 decliners and 239 gainers.
Among the actives, Shinhan Financial skidded 1.82 percent, while KB Financial declined 2.49 percent, Hana Financial surrendered 2.62 percent, Samsung Electronics tumbled 3.02 percent, LG Electronics plummeted 4.49 percent, SK Hynix tanked 4.44 percent, LG Chem retreated 3.54 percent, Lotte Chemical shed 1.91 percent, S-Oil lost 2.62 percent, SK Innovation added 0.35 percent, POSCO dropped 2.65 percent, SK Telecom plunged 3.42 percent, KEPCO fell 0.41 percent, Hyundai Motor sank 3.27 percent, Kia Motors gave away 3.86 percent and Samsung SDI was unchanged.
The lead from Wall Street suggests mild consolidation as stocks showed a lack of direction on Tuesday, bouncing back and forth across the unchanged line before ending slightly in the red.
The Dow fell 22.96 points or 0.07 percent to finish at 30,937.04, while the NASDAQ eased 9.93 points or 0.07 percent to end at 13,626.06 and the S&P 500 shed 5.74 points or 0.15 percent to close at 3,849.62.
The choppy trading on Wall Street partly reflected uncertainty about the near-term outlook for the markets after the NASDAQ and the S&P 500 climbed to new record closing highs on Monday.
Optimism about additional stimulus under President Joe Biden has helped drive stocks higher in recent sessions, although reports have pointed to intensifying opposition from GOP lawmakers.
The lackluster performance also reflected a mixed reaction to earnings news from a number of big-name companies as 3M (MMM) and Johnson & Johnson (JNJ) moved higher beating the street – while fellow Dow components American Express (AXP) and Verizon (VZ) moved to the downside.
Crude oil futures settled lower on Tuesday, as traders were leery of the uncertain outlook for energy demand. West Texas Intermediate Crude oil futures for March ended lower by $0.16 or 0.3 percent at $52.61 a barrel.
Closer to home, the Bank of Korea said this morning that consumer confidence improved in January, with an index score of 95.4. That beat forecasts for 93.6 and it’s up from 89.8 in December.
Consumer sentiment regarding current living standards was unchanged at 86, and the outlook was four points higher at 93. Consumer sentiment related to future household income was three points higher than in December at 96, and the outlook was three points higher at 102.