Renewed Selling Pressure Expected For South Korea Shares

(RTTNews) – The South Korea stock market bounced higher again on Wednesday, one session after ending the two-day winning streak in which it had spiked almost 70 points or 2.8 percent. The KOSPI now rests just above the 2,545-point plateau although it figures to head south again on Thursday.

The global forecast for the Asian markets is soft, with optimism for a Covid-19 vaccine giving way to concerns about the surging virus. The European markets were up and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The KOSPI finished slightly higher on Wednesday following gains from the chemical companies, weakness from the automobile producers and a mixed picture from the financials, oil and technology stocks.

For the day, the index added 6.49 points or 0.26 percent to finish at 2,545.64 after trading between 2,536.78 and 2,553.95. Volume was 911 million shares worth 13.3 trillion won. There were 490 gainers and 341 decliners.

Among the actives, Shinhan Financial collected 0.45 percent, while KB Financial added 0.64 percent, Hana Financial retreated 1.77 percent, Samsung Electronics skidded 1.37 percent, LG Electronics skyrocketed 4.47 percent, SK Hynix eased 0.10 percent, Samsung SDI jumped 1.52 percent, LG Chem soared 3.35 percent, Lotte Chemical surged 3.86 percent, S-Oil advanced 0.90 percent, SK Innovation tanked 2.19 percent, SK Telecom shed 0.65 percent, KEPCO dropped 1.15 percent, Hyundai Motor tumbled 1.64 percent, Kia Motors fell 0.51 percent and POSCO was unchanged.

The lead from Wall Street is negative as stocks opened higher on Wednesday but fell into the red as the day progressed and ended firmly under water.

The Dow dropped 344.93 points or 1.16 percent to finish at 29,438.42, while the NASDAQ sank 97.74 points or 0.82 percent to end at 11,801.60 and the S&P 500 lost 41.74 points or 1.16 percent to close at 3,567.79.

The late-day sell-off on Wall Street came amid renewed concerns about new restrictions and lockdowns as a result of the recent surge in coronavirus cases after data showed there were nearly 162,000 new cases and 1,707 deaths on Tuesday.

Concerns about the economic impact of the lockdowns overshadowed upbeat news regarding the coronavirus vaccine candidate being developed by Pfizer (PFE) and BioNTech (BNTX). The companies plan to submit a request to the FDA for an Emergency Use Authorization for the vaccine “within days.”

Crude oil prices moved higher on Wednesday amid expectations that OPEC will extend its current production cuts further into 2021. West Texas Intermediate Crude oil futures for December were up $0.39 or 0.9 percent to settle at $41.82 a barrel.

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