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Slow Start Expected For South Korea Stocks

The South Korea stock market has finished lower now in back-to-back sessions, shedding more than 25 points or 1.25 percent along the way. The KOSPI finished just below the 2,015-point plateau, and now analysts are forecasting little movement at the opening of trade on Friday.

The global forecast for the Asian markets is mixed, although any losses may be capped later by bargain hunting after fairly steep losses already this week. Financials may fall after Moody's Investors Service said it has downgraded the credit ratings of five Portuguese banks. But the markets may get a bounce from U.S. economic data as the Labor Department reported that weekly jobless claims beat estimates while falling to a four-year low. The European markets finished firmly in the red and the U.S. bourses were mixed but little changed - and the Asian markets figure to split the difference.

The KOSPI finished modestly lower on Thursday following losses from the technology stocks, shipbuilders and brokerages.

For the day, the index fell 17.33 points or 0.85 percent to finish at 2,014.41 after trading between 2,004.94 and 2,025.23. Volume was 446 million shares worth 4.91 trillion won. There were 603 decliners and 222 gainers.

Among the actives, Hyundai Heavy Industries shed 3 percent, while Daewoo Shipbuilding and Marine Engineering plunged 5.3 percent, Samsung Electronics lost 1.69 percent, LG Electronics eased 0.24 percent, LG Display dropped 2.95 percent, Hyundai Motor jumped 1.72 percent and Kia Motors added 0.27 percent.

Wall Street offers little guidance as stocks staged a recovery on Thursday afternoon after opening sharply lower. Profit taking contributed to the early weakness, with some traders cashing in on the recent strength in the markets amid calls by a number of analysts for a correction.

On the economic front, the U.S. Labor Department reported that weekly jobless claims missed estimates although still touched a four-year low. Jobless claims edged down to 359,000 in the week ended March 24 from the previous week's revised figure of 364,000. Economists had expected jobless claims to inch up to 350,000 from the 348,000 originally reported for the previous week.

A separate report from the Commerce Department showed that U.S. economic growth in the fourth quarter was unrevised, as a downward revision to exports was offset by an upward revision to non-residential fixed investment. GDP increased at an annual rate of 3.0 percent in the fourth quarter, unchanged from the previous estimate and in line with economist estimates.

Among individual stocks, Best Buy (BBY) fell by 7 percent after the consumer electronics retailer reported a fourth quarter loss. Mosaic (MOS) also ended the day in the red after the potash producer reported lower quarterly earnings and revenues.

On the other hand, shares of Red Hat (RHT) jumped 19.5 percent after the business software developer reported better than expected fourth quarter earnings and announced a $300 million stock buyback.

The major U.S. markets were mixed but little changed on Thursday as the Dow managed to close higher, but the NASDAQ and the S&P 500 closed in the red. The Dow crept up 19.61 points or 0.2 percent to finish at 13,145.82, while the NASDAQ slipped 9.60 points or 0.3 percent to 3,095.36 and the S&P 500 edged down 2.26 points or 0.2 percent to 1,403.28.

In economic news, South Korea posted a current account surplus of $0.64 billion in February, the Bank of Korea said on Thursday - bouncing back into the black after dipping into deficit in the previous month for the first time in two years. The headline figure was well shy of forecasts for a surplus of $2 billion following the $772 million deficit in January.

by RTTNews Staff Writer

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