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Renewed Selling Pressure Tipped For South Korea Shares

The South Korea stock market on Thursday snapped the four-day losing streak in which it had tumbled more than 170 points or 7 percent. The KOSPI now rests just above the 2,400-point plateau although it figures to head south again on Friday.

The global forecast for the Asian markets is broadly negative thanks to growing concerns over interest rates and a drop in crude oil prices. The European and U.S. markets were sharply lower and the Asian bourses figure to follow suit.

The KOSPI finished modestly higher on Thursday as gains from the financials and technology stocks were capped by weakness from the steel producers.

For the day, the index added 11.06 points or 0.46 percent to finish at 2,407.62 after trading between 2,393.46 and 2,423.88.

Among the actives, Shinhan Financial collected 0.40 percent, while Woori Bank shed 0.32 percent, Samsung Electronics added 0.44 percent, LG Electronics perked 2.90 percent, SK hynix soared 3.94 percent, Hyundai Motor spiked 2.22 percent, POSCO skidded 1.23 percent, Hyundai Steel lost 0.55 percent, Korea Electric Power tumbled 2.11 percent, S-Oil gained 0.43 percent, Hyundai Heavy advanced 3.92 percent, Daewoo Shipbuilding surged 2.63 percent and Naver was unchanged.

The lead from Wall Street is brutal as stocks quickly shrugged off an early move to the upside on Thursday, and tumbled deep into negative territory.

The Dow shed 1,032.89 points or 4.15 percent to 23,860.46, while the NASDAQ lost 274.82 points or 3.90 percent to 6,777.16 and the S&P 500 fell 100.66 points or 3.75 percent to 2,581.00.

The lead from Wall Street is awful as the mid-day sell-off sent the Dow into correction territory. Stocks have tumbled from record highs over the past week as traders grew concerned about inflation and higher interest rates.

In economic news, Federal Reserve Bank of Dallas President Robert Kaplan said on Thursday that the recent correction in U.S. stocks will have little impact on the broader economy, a sign that the FOMC still plans to raise interest rates at least three times in 2018.

Crude oil futures fell Thursday, slipping to their lowest in five weeks due to a stronger dollar and demand concerns. WTI light sweet crude oil was down 64 cents or 1 percent to $61.15/bbl.

by RTT Staff Writer

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