South Korea Shares Likely To See More Profit Taking On Thursday

(RTTNews) – The South Korea stock market on Wednesday halted the seven-day winning streak in which it had surged more than 250 points or 9 percent to a record closing high. The KOSPI now sits just beneath the 2,970-point plateau and it may take further damage again on Thursday.

The global forecast for the Asian markets is fraught with uncertainty after Trump supporters stormed the U.S. Capitol. Markets were mostly higher before this attack but now are likely to open lower.

The KOSPI finished modestly lower on Wednesday as profit taking from the technology and industrial stocks was mitigated by support from the oil and financial companies.

For the day, the index lost 22.36 points or 0.75 percent to finish at 2,968.21 after trading between 2,961.37 and 3,027.16. Volume was 1.8 billion shares worth 29.3 trillion won. There were 458 decliners and 397 gainers.

Among the actives, Shinhan Financial advanced 0.93 percent, while KB Financial collected 1.03 percent, Hana Financial rallied 2.06 percent, Samsung Electronics sank 2.03 percent, LG Electronics retreated 1.79 percent, SK Hynix added 0.38 percent, Samsung SDI skidded 0.87 percent, LG Chem shed 0.34 percent, Lotte Chemical rose 0.18 percent, S-Oil soared 4.10 percent, SK Innovation surged 5.33 percent, POSCO tumbled 1.75 percent, SK Telecom jumped 1.83 percent, KEPCO gained 0.93 percent, Hyundai Motor plunged 3.10 percent and Kia Motors tanked 2.35 percent.

The lead from Wall Street is unsettled, to put it kindly. The major averages were higher for much of the day but turned lower in the wake of the chaos in Washington to end mixed.

The Dow soared 437.80 points or 1.44 percent to finish at 30,829.40, while the NASDAQ sank 78.17 points or 0.61 percent to end at 12,740.79 and the S&P perked 21.28 points or 0.57 percent to close at 3,748.28.

Stocks moved to the downside going into the close of trading as supporters of President Donald Trump stormed the U.S. capitol building as lawmakers began the process of certifying President-elect Joe Biden’s victory.

Support earlier in the day came as traders reacted to the results of the highly anticipated Georgia runoff elections on Tuesday. Democratic challengers Jon Ossoff and Rev. Raphael Warnock both won, giving control of the senate to the Democrats.

Democratic control of the House, Senate and White House is seen as a positive for cyclical stocks due to the likelihood of additional fiscal stimulus. But the NASDAQ closed lower as tech stocks could be hurt by the shift into cyclical stocks and higher taxes.

Traders largely shrugged off a report from payroll processor ADP showing an unexpected drop in private sector employment in the U.S. last month.

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