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Steady Start Seen For South Korea Shares

The South Korea stock market on Wednesday snapped the two-day winning streak in which it had advanced almost 20 points or 0.8 percent. The KOSPI now rests just above the 2,360-point plateau and it figures to hold steady in that neighborhood again on Thursday.

The global forecast for the Asian markets is mildly positive, again riding continued strength from crude oil prices. The European and U.S. markets were slightly higher and the Asian markets figure to follow suit.

The KOSPI finished modestly lower on Wednesday as losses from the financials and industrials were mitigated by support from the technology stocks.

For the day, the index shed 5.29 points or 0.22 percent to finish at 2,360.18 after trading between 2,360.17 and 2,373.61. Volume was 315 million shares worth 5.8 trillion won. There were 546 decliners and 253 gainers.

Among the actives, POSCO tumbled 1.77 percent, while Hyundai Steel dropped 1.85 percent, Shinhan Financial lost 0.41 percent, Woori Bank fell 0.58 percent, Hyundai Motor skidded 1.47 percent, Kia Motors, plunged 2.89 percent, Lotte Chemical dipped 0.24 percent, Samsung Electronics gained 0.04 percent, LG Electronics surged 5.30 percent and SK hynix climbed 1.34 percent.

The lead from Wall Street suggests mild upside as stocks wound up slightly higher on Wednesday, bouncing back and forth across the unchanged line before finishing slightly higher at fresh record closing highs.

The Dow added 39.32 points or 0.18 percent to 22,158.18, while the NASDAQ gained 5.91 points or 0.09 percent to 6,460.19 and the S&P was up 1.89 points or 0.08 percent to 2,498.37.

The choppy trading came amidst uncertainty about the near-term outlook for the markets following recent strength. Traders also stuck to the sidelines ahead of key economic data later this week.

Traders kept an eye on Washington, where House Speaker Paul Ryan, R-Wis., said Republicans will release an outline of their tax reform plan the week of September 25th.

Energy stocks saw considerable strength, with an increase by the price of crude oil generating buying interest. Crude oil for October delivery jumped $1.07 to $49.30 a barrel.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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