South Korea Bourse May Find Traction On Wednesday

(RTTNews) – The South Korea stock market has finished lower in back-to-back sessions, sinking more than 25 points or 0.7 percent along the way. The KOSPI sits just beneath the 3,125-point plateau although it may stop the bleeding on Wednesday.

The global forecast for the Asian markets is mixed to higher on the back of strong crude oil gains. The European markets were down and the U.S. bourses were up and the Asian markets are tipped to follow the latter lead.

The KOSPI finished modestly lower on Tuesday following losses from the technology stocks, support from the financials and mixed performances from the oil, auto and chemical companies.

For the day, the index retreated 22.50 points or 0.71 percent to finish at 3,125.95 after trading between 3,047.56 and 3,154.79. Volume was 1.37 billion shares worth 31.1 trillion won. There were 435 decliners and 408 gainers.

Among the actives, Shinhan Financial collected 0.61 percent, while KB Financial gained 0.65 percent, Hana Financial soared 3.85 percent, Samsung Electronics shed 0.44 percent, LG Electronics sank 2.46 percent, SK Hynix tanked 3.01 percent, Samsung SDI rallied 2.05 percent, LG Chem plunged 3.61 percent, Lotte Chemical skyrocketed 8.87 percent, S-Oil spiked 2.88 percent, SK Innovation plunged 3.23 percent, POSCO retreated 2.46 percent, SK Telecom skidded 1.55 percent, KEPCO lost 0.57 percent, Hyundai Motor tumbled 2.43 percent and Kia Motors rose 0.14 percent.

The lead from Wall Street is cautiously optimistic as stocks bounced back and forth across the unchanged line on Tuesday, finally settling with modest gains.

The Dow added 60.00 points or 0.19 percent to finish at 31,068.69, while the NASDAQ gained 36.00 points or 0.28 percent to end at 13.072.43 and the S&P 500 rose 1.58 points or 0.04 percent to close at 3,801.19.

Political concerns, rising coronavirus cases and uncertainty about near term trend for the market after an historic climb weighed on stocks.

Amid FBI warning about possible armed protests across the United States in the days leading up to President-elect Joe Biden’s inauguration, a state of emergency has been declared in the District of Columbia.

Optimism about further economic stimulus in the U.S. and the rollout of coronavirus vaccines helped to nudge the markets higher. Investors are also looking ahead to quarterly earnings results.

Crude oil prices moved higher Tuesday, boosted by a weak dollar and Saudi Arabia’s decision to cut production in the next two months. West Texas Intermediate Crude oil futures for February ended up $0.96 or 1.8 percent at $53.21 a barrel.

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